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THE 


AMERICAN    STANDARD 


BOOKKEEPING 


HIGH   SCHOOL   EDITION 


BY 


C.  C.   CURTISS,  A.M. 

AUTHOR   OF    "  FREEHAND   PENMANSHIP  '* 


a^Oic 


NEW  YORK  .:.  CINCINNATI  .:•  CHICAGO 

AMERICAN    BOOK    COMPANY 


jt30PTRIGHT,   1902,   BY 

^  C.  C.  CURTISS. 
Entered  at  Stationers'  Hall,  London. 


CDBTISS'fl   BOOKKEEPING. 
W.   P.  I 


INTRODUCTORY 

This  text-book  of  bookkeeping  lias  been  shaped  by  many  years'  expe- 
rience of  the  author  as  teacher  and  accountant.  It  embodies  advanced 
pedagogic  principles  which  have  been  thoroughly  tested  and  worked  out 
in  the  classroom. 

In  the  first  part  of  this  work  the  different  kinds  of  accounts  are  fully 
explained  and  exemplified.  Thus  made  familiar  with  the  meaning  of 
entries  in  the  various  accounts,  the  pupil  is  prepared  to  do  the  work 
of  the  regular  "  sets  "  understandingly  and  without  floundering. 

The  book  is  carefully  graded,  and  the  sets  furnish  ample  material  for 
practice.  Six  price  lists  are  furnished  throughout,  to  facilitate  inde- 
pendent individual  work. 

Not  only  is  a  pupil  greatly  aided  in  his  study  by  the  observation  of 
actual  specimens  of  bookkeeping  records,  but  he  is  much  influenced  by 
all  the  details  of  their  form.  In  this  book,  therefore,  script  specimens  of 
all  kinds  are  supplied  in  profusion,  and  great  care  has  been  exercised 
in  making  them  models  of  accuracy  and  neatness  in  every  particular. 

The  work  required  of  the  pupil  is  designed  not  only  to  secure  a  broad 
and  sound  knowledge  of  the  theory  and  art  of  bookkeeping,  but  also  to 
encourage  the  formation  of  correct  business  habits.  Nothing  taught  in 
the  book  will  have  to  be  unlearned  later,  when  the  pupil  takes  up  real 
business  life. 

"  Figures  can  not  lie  "  is  a  business  aphorism  which  has  gone  into 
language  as  a  popular  proverb.  Like  all  proverbs  it  contains  elements 
of  both  truth  and  falsehood.  The  experience  of  all  men  of  business  has 
taught  them  that  figures  not  only  can  lie,  but  that  too  frequently  they  do 
deceive  the  most  expert, — sometimes  through  error,  sometimes  through 
criminal  intent.  In  the  art  of  accounting,  it  is  the  man  behind  the 
figures  Who  must  be  trusted  not  to  lie, — either  through  accident  or 
otherwise. 

During  forty  years  the  author  has  had  a  wide  and  varied  experience 
as  a  teacher  of  the  science  of  Bookkeeping  and  Accounting,  and  during 
that  long  period  a  procession  of  tens  of  thousands  of  learners  has  passed 
under  his  eye.  That  pregnant  experience  has  taught  him  that  error  lias 
been  more  fruitful  of  loss  and  disaster  than  criminal  intent. 

3 


4  .......  mmODUCTORT 

Since  our  country  has  become  the  foremost  nation  of  the  business 
world,  the  importance  of  commercial  training  in  our  schools  can  not  easily 
be  exaggerated;  although  that  which  we  learn  from  books  and  through 
the  agency  of  schools  is  only  a  foundation  for  the  finish  and  culture  which 
active  life  only  can  give.  It  is  not  claimed  that  the  guideboard  can  do 
more  than  point  the  way  to  the  City  of  Success ;  but  this  book  is  pre- 
sented to  the  public  with  confidence,  born  of  experience,  that  its  lessons 
are  in  every  way  reliable. 


CONTENTS 


PAGE 

Definitions 7 

Accounts 8-48 

Financial  Accounts     .         .         .  10-25 

Cash  Account  Illustrated  .         .  10-13 

Personal  Accounts  Illustrated  .  14-17 
Bank  Account  Illustrated  .         .  18, 19 

Bills  Receivable  Account  Illustrated  20-25 
Bills  Payable  Account  Illustrated  22-25 
Business  Accounts  .  .  .  26-43 
Merchandise  Accounts  Illustrated  26-31 
Shipment  Accounts  Illustrated  .  32,  33 

Real  Estate  Accounts  Illustrated  34-37 
Interest  Account  Illustrated  .  38-40 
Expense  Account  Illustrated  .  41-43 
Proprietary  Accounts  .         .  44-48 

Sole  Proprietor  Account  Illustrated  44-45 
Partnership  Accounts  Illustrated  46-48 
Complete  Business  Record  .         49-53 

Journalizing  .  .  .  .54, 55 
Books  of  Record  .         .         .  56-58 

Application  of  Principles    ...       59 

First  Set  .  .  .  .  60-96 
General  Directions  for  Work  .  .  61 
Memoranda  and  Vouchers  .         .  62,  63 

Practice  Ledger 64 

Statements,  Business  and  Financial  .  65 
Itemized  Bills     ....  66,  67 

Receipt  Book 68 

Inventory 69 

Day  Book,  Separate  .  .  .  70, 71 
Journal,  Separate  ...  72, 73 
ledger.  Open      ....  74, 75 

Index 76,  77 


Cash  Book 

F>rors  and  how  to  Correct  them 

Closing  the  Ledger     . 
Closed  Ledger,  Current  Form 
Memoranda  First  Set,  continued 
Vouchers  and  Results 
Closed  Ledger,  Full  Form  . 
Trial  Balance 
Balance  Sheets    . 

Second  Set 
General  Directions  for  Work 
Memoranda  of  Transactions 
Inventory  and  Results  (Feb.  14) 
Statements .... 
Day  Book  Opened 
Journal  Opened  . 
Check  Book  and  Auxiliaries 
Balance  Sheet  (Feb.  14)     . 
Memoranda,  continued 
Trial  Balance  and  Results 
Jo  u  rn  al- Day  book 

Third  Set  . 
Directions  for  Work  . 
Memoranda  of  Transactions 
Stock  Record 
Journal-Daybook 
Inventory  and  Trial  Balance 
Memoranda,  continued 
Inventory  and  Results 
Commercial  Paper 
Promissory  Notes 
Drafts  and  Acceptances 


CONTENTS 


PAGE 

Maturity  of  Commercial  Paper  .  .125 
Indorsements  of  Commercial  Paper  125,  120 
Orders 127 

FouKTH  Set  .  .  .  128-137 
Directions  for  Work  .  .  .  .128 
Memoranda  of  Transactions       .      129, 130 

Note  Book 131 

Journal- Day  book,  Opened  .      132, 133 

Bill  Book,  Bills  Receivable  and  Bills 

Payable  ....  134,135 
Memoranda,  continued  .  .  134-136 
Trial  Balance  and  Results  .      136, 137 


Fifth  Set  .        . 
Directions  for  Work  . 
Memoranda  of  Transactions 
Trial  Balance  Book    . 
Results        .... 


138-146 

138, 139 

^39-143 

'  144, 145 

.     146 


Sixth  Set  .  .  .  .  146-153 
Directions  for  Work  .  .  .  .147 
Memoranda  of  Transactions  .  147-151 
Journal-Daybook         ....     152 


Draft  Book 

Seventh  Set 
General  Instructions  . 
Memoranda  of  Transactions 
Time  Book  and  Auxiliaries 
Weekly  Pay  Roll 
Journal-Daybook 
Cash  Journal 
Trial  Balance  Book    . 
Balance  Sheet     . 

Eighth  Set 
General  Instructions  . 
Memoranda  of  Transactions 
Correspondence  . 
Shipping  Invoices 
Account  Sales 
Inventory  and  Results 
Journal-Daybook 
Cash  Journal 
Trial  Balance 
Balance  Sheet 


PACK 

153 

.   154- 

-172 

.   154, 

155 

.   155- 

-163 

.   156, 

157 

.   158, 

159 

.   164-167 

.   168, 

169 

.   170, 

171 

• 

172 

.   173- 

-192 

. 

174 

.   175 

-182 

.   176, 

177 

.   178, 

179 

.   ISO 

181 

.   182 

183 

.   184- 

-187 

.   188 

189 

. 

190 

192 

SECTION   ONE 

THE  PURPOSE  AND  METHOD   OF  KEEPING  ACCOUNTS,    WITH 
EXERCISES  FOR   PRACTICE  IN  ACCOUNTING 

PRELIMINARY    DEFINITIONS 

Bookkeeping  is  the  art  of  recording* mercantile  transactions  in  a  regular 
and  system^-tic  manner  so  that  one  may  know  the  true  state  of  his  busi- 
ness and  property  by  an  inspection  of  his  books.  i 

Business  is  any  occupation  by  which  a  person  seeks  to  obtain  a  liveli- 
hood or  to  acquire  wealth. 

Property  is  anything  owned ;  or  the  exclusive  right  of  possessing, 
enjoying,  and  disposing  of  a  thing. 

A  Mercantile  Transaction  consists  of  an  exchange  of  properties  from 
one  party  to  another. 

Resources  are  the  property,  of  all  sorts,  belonging  to  a  merchant  or  man 
of  business.  Money,  merchandise,  amounts  owing  a  merchant  on  account 
and  on  written  promise  to  pay,  and  the  like,  are  resources. 

Liabilities  are  debts  which  one  is  under  obligation  to  pay.  Amounts 
owing  otliers  on  account  and  on  written  promise  to  pay  are  liabilities. 

Capital  is  the  property  employed  in  business. 

A  Debtor  (Dr.)  is  a  party  who  owes  either  money,  goods,  or  services. 

A  Creditor  (Cr.)  is  a  party  who  trusts  or  gives  credit  in  business,  and 
hence  one  to  whom  money,  goods,  or  services  are  due. 

Cash,  which  originally  meant  a  chest  or  box  for  holding  money,  is  the 
general  name  for  money  or  its  equivalent. 

Bills  Payable  are  our  notes  or  written  obligations,  held  by  others,  to 
pay  specified  amounts  when  due. 

Bills  Receivable  are  others'  notes  or  written  obligations  which  we  hold, 
for  wliich  we  are  to  receive  specified  amounts  when  due. 

Merchandise  is  the  general  name  given  to  those  wares,  goods,  or  comr 
modities  which  are  bought  and  sold  with  a  view  to  profit. 

Real  Estate  is  the  name  given  to  landed  property,  such  as  farms,  houses 
and  lots,  stores,  etc. 

Interest  is  the  compensation  allowed  for  the  use  of  money. 

7 


8 


ACCOUNTS 


An  Account  is  a  statement  of  the  debits  and  credits  of  mercantile  or 
business  transactions.  It  has  two  sides :  the  left-hand  side  is  called  the 
debit  (Dr.)  side,  and  the  right-hand  side  is  called  the  credit  (Cr.)  side. 
The  difference  between  the  sums  of  the  items  on  the  two  sides  is  the  result 
for  which  the  account  is  kept. 

The  Balance  of  an  Account  is  the  difference  between  the  footings  of  the 
two  sides.  An  account  has  a  debit  balance  when  the  Dr.  side  is  the  larger, 
and'  a  credit  balance  when  the  Cr.  side  is  the  larger. 

Form  of  Accounts 


Dr. 

Side 

W-nt 

(D.  hacLat 

Cr.  Side 

Date 

Explanation 

Amt. 

Date 

Explanation 

Amt. 

28 

/76 

/^OO 

// 

/6 
15 

Balance  * 

/OO 

75 

y76 

00 

176 

00 

^e^. 

/6 

\  - 

^     76 

The  foregoing  illustration  shows  that  Mr.  Dodge  bought  merchandise  of  me  for  S175,  on 
credit,  Aug.  23,  1900  ;  and  that  on  Sep.  15,  1900,  he  paid  me  %  100,  in  cash :  and  it  also  shows 
that  he  still  owes  me  a  balance  of  $75. 


Dr. 

(Received) 

^ci^fv 

(Paid) 

Ci 

2 

^76 
//8 

60 
76 

7^- 
Jan. 

3 
4 

Balance  * 

1077 

^6 
80 

/0^6 

26 

/0^6 

26 

fcun. 

¥- 

1077 

SO 

This  record  shows  that  $  1095.25  has  been  received ;  that  %  17.45  has  been  paid  ;  and  that  there 
is  a  balance  on  hand  of  %  1077.80. 


Dr. 

(Redeemed) 

ffctU.   cPciyCl6-C&               (Issued) 

Cb 

I. 

ff 

/o 

10 

Balance  * 

/76 
850 

60 

75 

/ 

6 

176 
860 

60 
76 

626 

,6 

626\26 

^e.{y. 

/O 

860\76 

This  record  shows  the  issue  of  our  written  promises  for  $526.25;    that  $175.50  has  been 
redeemed ;   and  that  there  is  outstanding  $  350.75. 


*  Italic  type  in  accounts  indicates  red  ink. 


FORM   OF  ACCOUNTS  9 

Dr.  (Received)  ISiJUuQy  l\t^tlvd(>tb     •        (Disposed  of)  Cr. 


/ 

/o 

/6 

mcUe.. 

28  7 
82^ 
/67 

^0 

87 

ma.'L. 

/8 
20 
31 

Balance  * 

/87 
82^ 
267 

90 
87 
46 

770 

28 

770 

28 

mav. 

8/ 

267 

H 

This  record  shows  that  $770.23  of  others'  written  promises  have  been  received;  that  S 512.7^ 
have  been  disposed  of;  and  that  $257  Aii  remain  on  hand. 


Dr. 

(Cost) 

THti.iSyhyCincLl^t 

(Proceeds) 

Cb 

ff 
ff 

2 
SO 

€aU 
Gain* 

8atan^& 

^26 

226 

91 

60 
88 
27 

fCf- 

ff 
ff 

20 
30 

Balance  ^Inventory* 

826 
2/6 
202 

80 
80 

7^8 

10 

7^8 

/O 

(Z^u 

80 

202 

This  record  shows  that  merchandise  cos^  $651.83;  that  the  proceeds,  including  the  inventory 
(value  of  goods  left  on  hand),  were  $743.10;  and  that  the  gain  was  $91.27. 


Dr. 


(Cost) 


/\^o(zt  £^tat& 


(Proceeds) 


Cr. 


/9- 
ff 

/ 
/6 

fSitU  ^^ya{}-t& 
/8a,tan^& 

8^60 
2726 

/9- 
may 

ff 

ff 

/O 
31 
31 

/dltU  Re^tUycMe. 
Balance,  Inventory* 
Loss* 

8260 

2800 

125 

6/76 

00 

6/76 

00 

may  8/ 

2800 

This  record  shows  that  real  estate  cost  $6175;  that  the  proceeds,  including  the  inventory, 
were  $6050;  and  that  the  loss  was  $125. 


Dr. 

(Cost) 

J'lvtcU.^t 

(Proceeds) 

Cf 

\. 

fun& 

/ 

(Ea^k 

28 

76 

/9- 

// 

€a^k 

82 

60 

ff 

/6 

ff 

/^ 

80 

ff 

20 

ff 

2/ 

^0 

ff 

30 

Gain* 

33 

35 

To 

ff     26 

ff 

27 

60 

8/ 

8/ 

^0 

This  record  shows  that  the  use  of  others'  money  cost  us  $48.05;   that  others'  use  of  our 
money  produced  us  $81.40;  and  that  the  net  gain  was  $;5;3.35. 

»  Italic  type  in  accounts  indicates  red  ink. 


10  ACCOUNTS 


FINANCIAL   ACCOUNTS 

Financial  Accounts  are  those  which  are  kept  for  the  purpose  of  showing 
the  standing  of  the  business  by  exhibiting  its  resources  and  its  liabilities. 

Cash  Account 

Cash  is  the  title  applied  to  coin  or  specie,  and  may  include  United 
States  notes,  gold  and  silver  certificates,  treasury  notes,  bank  notes, 
bank  checks,  sight  drafts,  postal  orders,  express  orders,  certificates  of 
deposit,  and  business  paper  readily  converted  into  money. 

PURPOSE   OF   THE   CASH   ACCOUNT 

A  Cash  Account  is  kept  for  the  purpose  of  showing  the  amount  of 
money  received,  the  amount  of  money  paid,  and  the  amount  of  money 

which  should  be  on  hand.  ^ 

\ 

METHOD  OF   KEEPING  A  CASH  ACCOUNT 

The  amount  of  cash  on  hand  at  the  time  of  opening  the  account  and 
all  receipts  of  cash  are  entered  on  the  debit  side  of  the  Cash  account. 
When  cash  is  parted  with,  the  amount  paid  is  entered  on  the  credit  side 
of  the  Cash  account.  The  footing  of  the  Dr.  side  of  the  Cash  account 
will  show  the  total  cash  receipts,  and  the  footing  of  the  Cr.  side  will 
show  the  total  cash  disbursements.  The  excess  of  the  Dr.  footing  over 
the  Cr.  footing  will  show  the  amount  of  cash  which  should  be  on  hand. 

If  the  difference  between  the  footings  of  the  Dr.  and  the  Cr.  sides  of 
the  Cash  account  does  not  agree  with  the  amount  of  cash  on  hand,  an 
error  has  been  made  either  in  some  cash  transaction  or  in  the  record  of 
the  transaction. 

ILLUSTRATION   OF   KEEPING  A   CASH   ACCOUNT 

1.   Transactions.  —  Jan.  1, 19 .   I  have  on  hand  this  day  ^459.80  in  cash. Jan.  2. 

Received  ^175  cash  from  Charles  Davis  on  account. Jan.  3.    Paid  $56.40  in  cash  for 

groceries  bought  this  day. Jan.  4.     Paid  D.  C.  Bell  ^195  cash  in  full  of  account. 

Jan.  5.    Received  $123.75  cash  on  account  of  H.  C.  Butler. Jan.  6.    Received  $234.70 

cash  for  Mdse.  sold  this  day. Jan.  8.   Received  $49.70  cash  of  T.  J.  Gray,  to  apply  on 

account. Jan.  9.  Paid  $91.75  cash  in  full  of  S.  B.  Todd's  account. Jan.  10.  Received 

$57.60  cash  to  apply  on  J.  D.  Bond's  account. Jan.  11.   Paid  George  Davis  for  rent 

^50  cash. Jan.  12.   Received  $176.25  cash  for  Mdse.  sold  this  day. 

Required,  the  amount  of  cash  received^  the  amount  of  cash  paid,  and  the  balance  of  cash 
on  hand. 

Instruction.  —  The  pupil  will  study  the  ledger  record  of  each  of  these  transactions  as  recorded 
on  the  following  page. 


CASH  ACCOUNT 


U 


Dr. 


(Received) 


Form  of  Ledger  Record 


(Paid) 


Cr. 


/ 

€.w  IvancL 

^6^ 

80 

3 

^va(s.&vle^ 

66 

^0 

// 

i 

(^ka^vte^  ^auCa. 

176 

// 

f 

A  ^.  BM 

/96 

// 

6 

//.  e,  JSMe^v 

/2d 

76 

// 

9 

o/.  £.  S^adcL 

9/ 

76 

// 

6 

mcUt. 

23^ 

70 

f/ 

// 

Re.nt 

60 

// 

S\ir.  f.  ^tay 

H 

70 

// 

12 

Balance  on  hand  * 

883 

65 

// 

10 

f.  A  £ancL 

67 

60 

^^ 

// 

/2 

/76 

26 

^.^^             • 

/276 

80 
To 

/276 

80 

/^.^. 

/S 

883 

• 

Total  received,  $1276.80;  total  paid,  $393.15;  balance  on  hand,  $883.(55. 

2.    Transactions.  —  Jan.  15.  I  have  on  hand  %  883.65. Jan.  15.  Received  for  Mdse. 

sold  for  cash,  $327.40. Jan.  16.    Paid  cash  for  sundry  items  of  expense,  $14.90. 

Jan.  17.  Received  cash  for  sales  of  Mdse.,  $216.84. Jan.  18.  Received  of  George  Kipp 

cash  in  full  of  account,  $71.87. Jan.  19.  Paid  cash  for  real  estate,  $500. Jan.  20. 

Sold  Mdse.  for  cash,  $318.24. Jan.  22.  Received  cash  on  account  of  Eli  Hall,  $87.29. 

Jan.  23.   Paid  cash  for  rent  of   house,  $45. Jan.  24.   Paid  cash  for  personal 

taxes,  $75. Jan.  25.   Received  cash  of  John  Webb  in  full  of  account,  $54.90. 

Required,  total  cash  received,  total  cash  paid,  and  balance  of  cash  on  hand. 


Dr. 


(Received) 


Form  of  Ledger  Record 


(Paid) 


Cr. 


/6 

Bcitcinis^&  oyv  hcA^nd 

883 

66 

/Cf- 

fan. 

/6 

^?cjil&■i^^& 

/¥ 

qo 

tf 

/6 

mMie.. 

327 

¥-0 

// 

/9 

R&al  (^a^tate^ 

600 

// 

/7 

// 

2/6 

8¥ 

// 

23 

fy&nt 

^6 

// 

18 

^&(>ufe.  fCifi^jn 

7f 

87 

// 

2¥ 

iTaoce^ 

76 

// 

2o';mcUe.. 

3/8 

2¥ 

// 

25 

Balance  on  hand  * 

1825 

29 

ff 

22\€0i  /fait 

87 

29 

^^ 

it 

26\fak'yv  iae.6-6- 

6^ 

^0 

= 

^ 

j9ciicLn(^F, 

/96O 

f9 

/(j/60 

/9 

fan. 

26 

/326 

29 

Total  received,  $1960.19;  total  paid,  $634.90;  balance  on  hand,  $1325.29. 


♦  Italic  type  in  accounts  indicates  red  ink. 


12  ACCOUNTS 

EXAMPLES   FOR  PRACTICE   IN    KEEPING   A   CASH   ACCOUNT 

Instruction.  —  After  the  studeut  has  studied  the  purpose  of  the  Cash  account,  and  the  method 
of  keeping  it,  as  illustrated  on  pages  10  and  11,  he  should  test  his  knowledge  of  the  same  by 
working  the  following  examples,  and  submit  his  work  to  the  teacher  for  inspection  and  instruction. 

1.   Transactions.  —  Jan.  1, 19 — .  I  have  on  hand  cash,  $475.80. Jan.  2.  Paid  cash 

for  sundry  expenses,  $14.75. Jan.  3.   Received  cash  of  Henry  Burton  on  account* 

$44.25. Jan.  4.    Received  cash  for  Mdse.  sold  this  day,  $147.94. Jan.  4.   Paid 

Bell  &  Mabey  cash  on  account,  $  137.45. Jan.  5.    Received  cash  for  a  pair  of  horses 

sold  Weed  Munro,  $375. Jan.  5.   Paid  John  L.  Smith  for  3  tons  of  hay,  at  $7.50» 

$  ?  . Jan.  5.  Received  cash  of  A.  N.  Palmer  in  full  of  account,  $  97.48. Jan.  6.  Paid 

Kiehle  &  Co.  cash  on  account,  $15. Jan.  6.   Received  cash  of  Hyde  &  Manley  in  full 

of  their  note,  $  50. Jan.  6.   Paid  cash  for  expenses,  $  7.50. 

Required,  the  receipts,  the  disbursements,  and  the  balance  on  hand. 

Form  of  Note  referred  to  under  date  of  Jan.  6,  19 — 


/ J-^  ^^  New  York,  N.Y.,  €e.to6.&v  6,  19—. 

3'k'btey   yyuynbh^  ^-^-^^-^^-^^^^.^  after   date,   for   value   received, 

W-&  promise  to  paly  3'h.  €.  ^tA^demt  or  order, 

^i^ti^  and  ^^100 Dollars. 

At  our  office. 

Due  fan.  6,  /cf — .  fiifcU  V"  iTla^nUAj . 


2.  Transactions.  — Jan.  8,  19 — .   I  have  on  hand  cash,  $993.27. Jan.  8.  Received 

cash  for  Mdse.  sold,  $194.75. Jan.  9.   Paid  James  Ryan  cash  on  account,  $475. 

Jan.  9.   Received  cash  of  H.  M.  Myers  for  his  note  due  this  day,  $  100 ;  and  for  interest 

on  same,  one  year,  at  7%,  $  ?  ;  total,  $  ?  . Jan.  10.   Paid  J.  H.  Thompson  cash  for 

my  note  and  interest  due  this  day ;   principal,  $  50 ;   interest  for  6  mos.  at  6  %,  $  ?  ; 

total,  $?. Jan.  11.    Received  cash  of  I.  C.  Jones  in  full  of  account,  $174.50. 

Jan.  11.   Paid  Harry  Curtiss  cash  in  full  for  services  as  clerk,  $47.94. Jan.  12.    Re- 
ceived of  Irwin  Shepard  $  275.50  cash  in  full  of  his  note  due  this  day. Jan.  12.    Paid 

G.  S.  Albee  $145.75  cash,  for  my  note. Jan.  13.  Received  cash  of  C.  L.  Sa\\^'er  in 

full  of  his  note  and  interest;  principal,  $150;  interest,  one  year,  at  7%,  $  ?  ;  total,  $  ?  . 

Required,  total  receipts,  total  disbursements,  and  balance  on  hand. 

3.  Transactions. — Jan.  15,  19 — .    I  have  on  hand  cash,  $1185.33. Jan.  15.   Re- 
ceived cash  of  David  Rand  in  full  of  his  note  and  interest ;  principal,  $  175 ;  interest, 

$  3.50 ;  total,  $  178.50. Jan.  16.    Paid  for  sundry  expenses,  cash,  $  13.75. Jan.  17. 

Sold  Henry  Avery,  for  cash,  house  and  lot,  $1750. Jan.  18.    Paid  A.  Brown  cash 

in  full  of  my  note  and  interest;   face  of  note,  $500;   interest  at  7%  for  3  mos.,  $?  ; 

total,  $?. Jan.  18.     Lost,  cash,  $2. Jan.  19.     Drew  out  for  personal  use,  $75 

cash. Jan.  20.    Paid  J.  W.  Johnson's  sight  draft  on  me,  favor  of  Rodney  G.  Kimball, 

for  $  153.50  in  cash. Jan.  22.    Paid  cash  for  Mdse.  bought  this  day,  $  375. Jan.  24. 

Received  cash  of  AV.  C.  Smith,  in  full  of  his  note  and  interest;  face  of  note,  $95;  in- 
terest at  7  %  for  2  mos.,  $  ?  ;  total,  $  ?  . 

Required,  total  receipts,  total  disbursements,  and  balance  on  hand. 


CASH  ACCOUNT  13 

Form  of  Sight  Draft  referred  to  under  date  of  Jftn.  20,  19 — 


f/63  ^^.  Boston,  Mass.,  fafiua^y  20,  19 — . 

at  Q.icfkt  ^..-^.^.^.^.^.^.^.^.^.^.^.^.^..^.^.^.^.^.^.^^^^  value  received, 

Pay  to  Rocln&j  #.  fCiyyv{}^tt or  order, 

Une^  /'fiLitdvecl  (S^ijty-tkv&&  and  ^^Jiqq  ^^.^^s.^...^^-^v^^^^•^  Dollars, 

and  charge  to  the  account  of 

To  Sh.  €  ^t«.le^,  I  5;_   ^__    hl^^^. 

fi-o-yyve.  (^it^,  cA.y.\  ^  > 


4.  Transactions.  —  Feb.  1,  19 — .   C.  C.  Curtiss  (partner)  invests  in  business,  cash, 

t*^  1800. ----Feb.  1.   The  Teacher  (partner)  invests  in  business,  cash,  ^1200. Feb.  1. 

The  firm  pays  George  Hale  cash  for  rent  of  store,  ^125. Feb.  2.   Received  cash  for 

sales  of  Mdse.,  t*$  374.98. Feb.  3.   Paid  cash  for  Charles  Huntress's  sight  draft  on 

C.  C.  Curtiss  for  -|175. Feb.  5.   Received  cash  in  full  of  eJones  &  Co.'s  note  and 

interest ;  principal,  %  125 ;  interest,  %  7.50 ;  totai,  f  ?  . Feb.  6.  W.  J.  Christie  redeemed 

his  note,  our  favor,  in  cash ;  face  of  note,  %  275 ;  interest  at  6  %,  3  mos.,  %  4.13. Feb.  7. 

Paid  Wesley  Neill's  draft  on  Teacher  for  %  65,  in  Cash. Feb.  8.   Paid  Adam  Cole 

cash  in  full  of  our  note  and  interest ;  princij)al,  %  130 ;  interest  at  6  %  for  two  months 

and  twenty-four  days,  $  ?  ;  total,  $  ?  . Feb.  9.   Paid  cash  for  Mdse.  bought  this  day, 

1750. 

Required,  total  receipts,  total  disbursements,  and  balance  on  hand. 

5.  Transactions.  —  Feb.  12,  19—.   Amount  of  cash  on  hand,  $2536.64. Feb.  12. 

Received  cash  of  Rufus  Choate  in  full  of  his  note  and  interest;   face  of  note,  $450; 

interest  for  six  months,  at  7%,  $  ?  . Feb.  13.     Paid  C.  S.  Gilbert  cash  in  full  of  our 

note,  his  favor;  principal,  $375;  interest,  60  days  at  6%,  $  ?  . Feb.  14.  C.  C.  Curtiss 

(partner)  made  an  additional  cash  investment  of  $1200. Feb.  15.   Teacher  drew  out 

$25  cash  for  personal  use. Feb.  15.   Received  cash  from  sales  of  Mdse.,  $237.50. 

Feb.  15.  Paid  cash  for  clerk  hire,  $125. Feb.  16.  Paid  C.  E.  Cady's  draft  on  Teacher 

for  $110,  in  cash. Feb.  17.   Received  cash  from  sales  of  Mdse.,  $321.40. Feb.  17. 

Received  cash  of  C.  B.  Gilbert  in  full  of  his  note  and  interest;  principal,  $197.50; 
interest  for  three  months,  at  7  %,  $  ?  ;  total,  $  ?  . 

Required,  total  receipts,  total  disbursements,  and  balance  on  hand. 

6.  Transactions.  —  Feb.  19,  19—.   Cash  on  hand,  $4322.54. Feb.  19.  Bought  of 

Homeville  Bank,  for  cash,  a  draft  on  Union  Bank,  Chicago,  for  $500,  at  |%  premium, 

and  remitted  the  same  to  Marshall  Field  &  Co., on  account;  premium, $?;  total,  $?. 

Feb.  20,  cash  sales  of  Mdse.,  $374.85. ----Feb.  20.   Paid  cash  for  Byron  Horton's  sight 

draft  on  C.  C.  Curtiss  (partner)  for  $250. Feb.  21.   Received  cash  for  C.  L.  Sawyer's 

note  due  this  day;  principal,  $220;  interest  for  six  months  at  7%,  $  ?;  total,  $  ?  . 

Feb.  23.   Teacher  (partner)  made  an  additional  cash  investment  of  $1000. Feb.  23. 

Borrowed  of  Homeville  Bank,  on  our  note  at  90  days,  $  1000 ;  and  on  this  note  we  paid 

interest  at  7%  in  advance,  $  ? . Feb.  24.  Received  cash  of  W.  F.  Phelps,  in  full  of  all 

demands,  $149.75. ----Feb.  26.   Cash  sales  of  Mdse.,  $427.30 Feb.  27.   Bought  for 

cash,  Mdse.,  $275. 

Required,  total  receipts,  total  disbursements,  and  balance  on  hand. 


14  '  ACCOUNTS 

Personal   Accounts 

PURPOSE  OF  KEEPING  PERSONAL  ACCOUNTS 

Personal  Accounts  are  those  financial  accounts  which  are  kept  with 
persons,  partnerships,  or  corporations  for  the  purpose  of  showing,  at  any 
time,  whether  such  persons,  partnerships,  or  corporations  are  indebted  to 
us,  or  we  to  them,  and  how  much  in  either  case. 

Our  dealings  on  account  with  an  individual  should  be  recorded  under 
the  individual's  name ;  our  dealings  with  a  partnership,  under  the  firm's 
name  ;  our  dealings  with  a  corporation,  under  the  name  of  the  corpora- 
tion. 

METHOD  OF   KEEPING  PERSONAL   ACCOUNTS 

When  a  party  (person,  partnership,  or  corporation)  receives  value 
from  us  on  a  verbal  or  implied  promise  to  pay  at  some  future  time,  the 
amount  of  the  debt  is  entered  on  the  debit  side  of  his  account.  When  a 
party  gives  value  to  us  on  our  verbal  or  implied  promise  to  pay  at  some 
future  time,  the  amount  of  the  credit  is  entered  on  the  credit  side  of  his 
account.  The  difference  between  the  footings  of  the  Dr.  and  Cr.  sides 
of  a  personal  account  shows  the  standing  of  the  account.  When  the  footing 
of  the  Dr.  side  of  a  personal  account  exceeds  the  footing  of  the  Cr.  side, 
the  party  owes  us  the  excess.  When  the  footing  of  the  Cr.  side  of  a 
personal  account  exceeds  the  footing  of  the  Dr.  side,  we  owe  him  the  excess. 

ILLUSTRATION  OF  KEEPING  PERSONAL  ACCOUNTS 

1.  Transactions  with  E.  A.  Sheldon.  —  Feb.  1,   19 — .    Sold  him  Mdse.  on  credit, 

$179.60. Feb.  2.  Sold  him  Mdse.  on  credit,  $118.75. Feb.  3.   Received  cash  from 

him  on  account,  $175. Feb.  5.   Bought  of  him,  on  credit,  15  bbls.  flour,  at  $5.60,  $84. 

Feb.  6.   Sold  him  Mdse.  on  credit,  $192.46. Feb.  7.    Received  cash  from  him  on 

account,  $150. Feb.  8.   Sold  him  on  credit,  Mdse.,  $  119.25. Feb.  9.   Loaned  him 

on  account,  cash,  $100. Feb.  10.    Sold  him  on  credit,  Mdse.,  $146.30. Feb.  12. 

Received  his  check  for  $100. Feb.  13.   Sold  him  on  credit,  Mdse.,  $118.45. 

Required,  the  standing  of  the  account  Feb.  13,  19 — .    How  much  does  he  owe  me,  or  I  himf 

Form  of  Check  referred  to  under  date  of  Feb.  12,  19 — 


No.  121.  HoMEViLLE,  III.,  c^&6A.tocii/Y  ^^f  ^^ — • 

gotnjexrillje  gaixfe^ 

\    Pay  to  S^k.  8.  cftud&nt or  order, 

fc&  /if^ondvacC  cLTLcC  %Qo  ___..,_______  Dollars,      f/ 00.00. 

8.  (L.  ^kttda'iv. 


PERSONAL  ACCOUNTS 


16 


Dr. 


(In  our  favor) 


Form  of  Ledger  Record 


(In  his  favor) 


Cr. 


/ 

mcUt. 

//f 

60 

/9- 

(5' 

(^a^k 

//^ 

// 

i* 

// 

//8 

76 

tf 

^ 

(^to-'H'L 

^f 

// 

d 

// 

/^2 

^6 

// 

7 

(^Ci^k 

/60 

// 

(5 

// 

//q 

26 

// 

/^ 

// 

/OO 

ff 

f 

(gafl.4 

/OO 

// 

ie? 

Balance  * 

465 

81 

// 

/^ 

;^^e. 

/¥-6 

SO 

^^ 

tf 

/cS" 

//8 

^6 

/^ 

9  Ms/ 

9/"/- 

8/ 

c^£^. 

/f 

^66  8/ 

• 

Total  debits,  $974.81;  total  credits,  $509;  he  owes  me  $465.81. 

2.   Transactions  with  Charles  Davies  &  Co.  —  Feb.  15,  19 —   Bought  groceries  of 

them  on  credit,  $54.30. Feb.  16.   Bought  dry  goods  of  them  on  credit,  $472.25. 

Feb.  17.   Paid  them  cash  on  account,  $150. Feb.  19.   Bought  produce  of  them  on 

credit,  $76.90. Feb.  20.  Bought  live  stock  of   them  on  credit,  $225. Feb.  21. 

Sold  them  real  estate  on  credit,  $200. Feb.  23.   Bought  of  them  on  credit,  groceries, 

$  65.70. Feb.  23.  Paid  them  cash  on  account,  $  160. Feb.  24.   Bought  of  them  on 

credit,  dry  goods,  $  115.25. Feb.  26.   Bought  of  them  on  credit,  produce,  $  61.40. 

Feb.  27.   Sold  them  on  credit,  pair  of  horses,  $  300. 

Required,  the  balance  of  Charles  Davies  ^*  Co*s  account. 


Form  of  Ledger  Record 

Dr.       (Against  them)        ^Adlt^^   hcUV-tt^    V^   &0-.        (Against  me)  Cr. 


/9— 

/7 

^a^/v 

/60 

/cf— 

/6 

^la^evie^ 

6¥- 

30 

// 

2/- 

R&at  €atate. 

200 

tf 

/6 

hvif  ^aod^ 

^72 

26 

// 

23 

€-aa./i 

/6o 

ff 

/9 

S'u>-clue& 

76 

90 

ft 

27 

£iv~&  ^to(bk, 

300 

// 

20 

£iv-&  ^tx)^/o 

226 

tt 

28 

Balance  ^ 

260 

8o\ 

// 

23 

^VO^&vi&Q. 

66 

70 

^^ 

ff 

2^ 

2yiif  ^aodo^ 

//6 

26 

-^ 

ff 

26 

-%odu€& 

6/ 

^0 

/070 

80\ 

/070 

SO 

S^^L 

28 

260 

80 

Total  debits,  $810;  total  credits,  $  1070.80;  I  owe  them  $260.80. 
*  Italic  type  in  accounts  indicates  red  ink. 


16  •  ACCOUNTS 


EXAMPLES   FOR   PRACTICE   IN   KEEPING  PERSONAL  ACCOUNTS 

Instruction.  —  When  the  pupil  has  become  familiar  with  the  purpose  and  method  of  keeping 
personal  accounts  as  illustrated  on  pages  14  and  15,  he  will  work  the  following  examples,  using 
the  Practice  Ledger,  and  submit  the  result  of  each  to  the  teacher  for  inspection  and  for  further 
instruction. 

1.  My  Dealings  with  a  Farmer. 

Transactions.  —  Feb.  1,  19 — .   I  am  owing  Anthony  Austin  a  balance  of  $465.75. 

Feb.  2.  Sold  him,  on  credit,  Mdse.  amounting  to  %  164.50. Feb.  28.   Paid  him  cash  on 

account,  $150. Mar.  14.  Bought  of  him,  on  credit,  2  tons  of  hay,  at  $13.50,  $  ?  . 

Apr.  4.  Sold  him,  on  credit,  Mdse.  amounting  to  $86.75. May  10.  Bought  of  him,  on 

credit,  a  pair  of  matched  horses  for  $275. June  1.  Bought  of  him,  on  credit,  75  bush. 

of  oats,  at  50  f,  $?  . June  2.    Sold  him,  on  credit,  Mdse.  amounting  to  $97.45. 

June  5.  Bought  of  him,  on  credit,  2  cows,  at  $45  each,  $  ?  . June  10.  Paid  him  on 

account,  cash,  $150. June  15.  Sold  him  on  credit,  Mdse.,  $30. 

Required,  the  balance  due  him  or  me. 

2.  My  Dealings  with  a  Merchant. 

Transactions.  —  Mar.  lj\19 — .     Benoni  Butler  owes  me  on  account  a  balance  of 

$267.50. Mar.  3.   Bought  of  him,  on  credit,  dry  goods  amounting  to  $69.50. 

Mar.  20.  Received  cash  of  him,  on  account,  $75. Apr.  1.  Bought  of  him  dry  goods 

amounting  to  $42.25. Apr.  15.  Received  his  check  on  Homeville  Bank  for  $50,  on 

account. May  3.  Sold  him,  on  credit,  a  pair  of  carriage  horses  for  $315. May  10. 

Received  his  check  for  $250,  on  account. June  10.   Sold  him,  on  credit,  3  tons  of 

hay,  at  $12.50,  $  ?  . June  15.  Sold  him,  on  credit,  45  bush,  of  oats,  at  48^,  $  ?  . 

June  20.  Sold  him,  on  credit,  50  bush,  corn,  at  53;^,  $  ?  . June  30.  Sold  him,  on  credit, 

4  cords  of  maple  wood  at  $4.50,  $  ?  . 

Required,  the  balance  due  him  or  me. 

3.  My  Dealings  with  Four  Merchants. 

Transactions.  —  Apr.  1, 19 — .    I  owe  Edward  N"orth,  on  account,  $257.90,  and  Charles 

West,  on  account,  $495.80. Apr.  12.  Bought  of  Edward  North,  on  credit,  a  bill  of  dry 

goods,  $575.60. Apr.  24.   Paid   Charles  West  cash  on  account,  $250. Apr.   30. 

Gave  my  note  to  Edward  North  for  $  ?  ,  in  full  for  balance  due  him  on  account  Apr.  1. 

May  1.  Bought  of  Henry  Eastman,  on  credit,  a  bill  of  hardware,  $176.56. May  5. 

Paid  Henry  Eastman  cash  on  account,  $100. May  7.   Bought  of  James  Southwell, 

on  credit,  an  invoice  of  crockery,  $96.50. May  8.   Passed  my  note,  drawn  at  thirty 

days,  with  interest,  to  Henry  Eastman,  on  account,  $50. May  10.  Bought  of  Charles 

West,  on  account,  groceries,  $840.75. May  31.  Bought  of  Edward  North,  on  credit, 

dry  goods,  $397.80. June  1.   Paid  Charles  West's  draft  on  me  for  balance  due  him 

May  1,  $  ?  . June  1.  Paid  Edward  North  cash  in  full  of  his  bill  of  Apr.  12,  $  ?  . 

June  15.  Bought  of  Charles  West,  groceries,  per  bill,  $680.50;  paid  him  cash  for  one 

half  of  bill,  $  ?  . June  21.  Bought  of  Edward  North,  dry  goods,  per  invoice,  $794.80. 

June  22.    Paid  James  Southwell  cash  on  account,  $46.50. June  25.    Settled  my 

account  with  Henry  Eastman  by  giving  him  my  check  on  Homeville  Bank  for  $  ?  . 

June  30.    Bought,  on  credit,  of  Henry  Eastman,  hardware,  per  invoice,  $79.45. 

Required,  the  standing  of  each  merchant\'i  account. 


PERSONAL   ACCOUNTS  17 

4.  A  Merchant's  Accounts  with  Six  Customers. 

Transactions.  — May  1,  19 — .    Sold  Allen  Miller,  on  credit,  Mdse.,  !§  27.50. May  3. 

8old  13.  llorton,  on  credit,  Mdse.,  ^7.98. May  5.    Received  cash  of  Allen  Miller  on 

account,  %  15. May  10.  Sold  Charles  E.  Cady,  on  credit,  Mdse.,  $21.60. May  12.  Sold 

Allen  Miller,  on  credit,  Mdse.,  .$35.00. May  14.  Sold  B.  Horton  Mdse.,  $34.50;  received 

cash  for  one  half,  $  ?  . May  16.   Received  cash  to  apply  on  B.  Horton's  account,  $20. 

June  4.   Sold  B.  Horton  Mdse.,  $27.40;  received  cash  for  one  half,  $  ?  . June  7. 

Sold  C.  E.  Cady  Mdse.,  $42.80;  received  cash  for  one  half,  $?. June  10.   Sold  La 

Selle  II.  White,  on  credit,  Mdse.,  $15.75. June  12.   Sold  Mary  A.  Ward,  on  credit, 

Mdse.,  $27.50. June  15.  Sold  Alice  Scheurman,  on  credit,  Mdse.,  $48.75. June  18. 

Received  La  Selle  II.  AVhite's  check  for  $10,  on  account. June  20.   Received  cash  of 

Mary  A.  Ward,  on  account,  $15. June  22.   Sold  Alice  Scheurman  Mdse.,  $37.50; 

received   cash  for  one  half,   $?. June  30.   Received  Alice  Scheurman's  check  in 

settlement  of  her  bill  of  June  15,  $  ?  . 

Required,  the  standing  of  each  customer's  account. 

5.  A  Merchant's  Accounts  with  Several  Parties. 

Transactions.  —  June  1,  19 — .   Bought  of  Charles  Brown,  on  credit,  a  bill  of  goods, 

^2500. June  5.   Sold  Thomas  Gray,  on  credit,  goods,  $ 45. June  11.   Sold  James 

White  goods,  $38.50;  received  cash  for  one  half,  $  ?  . June  15.   Sold  Henry  Black,  on 

credit,  goods,  $22.50. June  18.   Sold  James  White,  on  credit,  goods,  $31.50. June 

21.   Paid  Charles  Brown  cash,  $1250. June  25.  Received  cash  from  Thomas  Gray,  on 

account,  $30. June  30.   Received  cash  of  Henry  Black,  on  account,  $10. July  2. 

Sold  George  Green  goods,  $77;   received  cash  for  one  half,  $  ?  . July  3.   Sold  Mrs. 

Henry  Black  goods,  $46.50;  received  cash  for  one  half,  $?. July  16.   Paid  Charles 

Brown,  cash,  $500. July  18.   Received  cash  of  Thomas  Gray,  $15. July  20.   Sold 

James  White,  on  credit,  goods,  $61.25. July  23.  Sold  George  Green,  on  credit,  $79.60. 

July  24.  Sold  Henry  Black,  on  credit,  goods,  $49.70. Aug.  2.  Sold  George  Green, 

on  credit,  goods,  $56.90. Aug.  6.    Paid  Charles  Brown,  on  account,  $750. Aug.  7. 

Sold  George  Green,  on  credit,  goods,  $94.60. Aug.  10.   Received  cash,  $25,  from 

James  White,  on  account. Aug.  16.  Received  from  Henry  Black,  on  account,  cash, 

$  50,  and  from  George  Green  $  75,  cash,  on  account. 

Required,  the  standing  of  each  account. 

6.  A  Merchant's  Accounts  with  Several  Parties. 

Transactions.  —  July  2,  19 — .   Bought  of  Ashwood  &  Co.,  N.Y.,  on  credit,  an  invoice 

of  goods,  $1575. July  2.   Bought  of  Beech  &  Co.,  Boston,  as  per  invoice,  goods 

amounting  to  $3000;   paid  them  per  check  for  one  half  of  bill,  $?. July  2.   Sold 

Charles  Maple,  on  credit,  bill  of  goods,  $49.70. July  3.  Sold  Henry  Walnut,  on  credit, 

bill  of  goods,  $57.60. July  5.   Bought  of  Spruce  &  Co.,  Chicago,  goods  amounting  as 

per  invoice  to  $1750. July  6.   Remitted  to  Ashwood  &  Co.,  New  York,  exchange  for 

f  1000,  bought  per  check  at  Homeville   Bank. July  7.   Received   Charles  Maple's 

check  for  $25,  to  apply  on  account. July  10.   Bought  of  Homeville  Bank,  per  check, 

Boston  exchange  for  $  500,  and  remitted  the  same  to  Beech  &  Co.,  Boston,  to  apply  on 

account. July  11.   Sold  James  Birch,  on  credit,  bill  of  goods,  $97.60. July  16. 

Received  Henry  Walnut's  check  for  $20,  on  account. July  20.   Bought  of  Homeville 

Bank,  per  check,  Chicago  exchange  for  $  750,  and  remitted  the  same  to  Spruce  &  Co., 
Chicago,  to  apply  on  account. ---'- July  23.   Received  Charles  ^Maple's  Check  for  $  ?  ,  in 

full  of  account. July  25.   Bought  of  Homeville  Bank,  per  check,  New  York  exchange 

for  $  ?  ,  and  remitted  the  same  to  Ashwood  &  Co.,  N.Y.,  in  full  of  account. 

Required,  the  standing  of  each  account. 


18  ACCOUNTS 


Bank   Account 


It  is  the  custom  of  prudent  business  men  to  deposit  their  money  in 
a  bank  for  safe  keeping,  and  to  withdraw  such  amounts  as  may  be 
needed  by  checks. 

A  Check  is  an  order  for  money,  drawn  by  a  depositor,  on  a  bank  or 
on  an  officer  of  a  bank,  and  is  payable  on  presentation  at  the  bank. 

A  Depositor  is  a  party  who  makes  a  deposit  in  a  bank. 

A  Deposit  is  money  or  other  value  placed  in  a  bank  for  safe  keeping 
and  subject  to  order. 

When  a  deposit  is  made,  the  depositor  makes  a  statement  in  writing, 
called  a  Deposit  Ticket  or  Slip,  which  sets  forth  the  date,  the  name  of 
the  depositor,  the  kind  of  funds  deposited,  whether  coin,  bills,  checks, 
notes,  or  drafts,  and  the  amounts.  See  page  105.  The  deposit  ticket, 
together  Avith  the  funds  to  be  deposited,  is  passed  to  the  receiving  teller 
of  the  bank,  who  acknowledges  the  receipt  of  the  funds  by  making  an 
entry  in  the  depositor's  baiik  pass  book. 

A  Bank  Pass  Book  is  a  jSiiiall  account  book  which  the  bank  furnishes  to 
a  depositor.  It  contains  a*^  record  of  all  deposits,  and  of  all  sums  paid  on 
depositor's  checks.     See  page  105  for  form  of  bank  pass  book. 

When  the  depositor  wishes  to  use  the  funds  which  he  has  on  deposit, 
he  draws  a  check  and  delivers  it  to  the  person  to  whom  the  money  is 
to  be  paid.  This  person,  called  the  Payee,  may  present  the  check  to  the 
paying  teller  of  the  bank  and  obtain  the  amount  expressed  therein,  or 
he  may  transfer  the  check  to  some  other  party. 

A  check  drawn  by  another  party,  when  received  and  held  by  us,  is 
usually  considered  as  cash. 

Many  accountants  keep  no  other  Bank  account  than  that  on  the 
margin  of  the  check  book,  considering  the  funds  on  deposit  as  cash  on 
hand^  though  in  the  custody  of  the  bank  for  safety. 

PURPOSE  OF   KEEPING  A  BANK  ACCOUNT 

An  account  is  kept  with  a  bank  for  the  purpose  of  showing  at  any 
time  the  amount  of  our  funds  deposited  in  the  bank,  the  amount  with- 
drawn by  check  or  otherwise,  and  the  balance  on  deposit. 

METHOD  OF  KEEPING  A  BANK  ACCOUNT 
When  funds  are  deposited  in  a  bank,  the  amount  is  entered  on  the 
Dr.  side  of  the  Bank  account.  When  money  is  withdrawn  from  the 
bank,  the  amount  expressed  on  the  face  of  the  check  is  entered  on 
the  Cr.  side  of  the  Bank  account.  The  excess  of  the  footing  of  the 
Dr.  side  will  show  the  balance  on  deposit.  An  excess  of  the  Cr.  foot- 
ing will  show  an  overdraft. 


BANK  ACCOUNT 


19 


ILLUSTRATION   OF   KEEPING   A  BANK  A'CCOUNT 

Transactions.  —  Jan.   2,    19 — .      Deposited    cash    in    Homeville    Bank,    $1500. 

Jan.  4.    Drew  check,  favor  of  W.  H.  Laird,  to  apply  on  account,  f  57.80. Jan.  6.    Paid 

Harry  B.  Curtis.s,  on  account,  per  check,  ^G4.80. Jan.  8.    Deposited  cash  in  Home- 
ville Bank,  if  397.50. Jan.  \'l.   Paid  my  note  due  this  day,  favor  of  Charles  Kent,  per 

check,  $150. Jan.  15.   Redeemed  my  acceptance,  favor  of  William  H.Warren,  per 

check,  f  75.60. Jan.  17.   Deposited  cash,  $  100.---- Jan.  20.   Paid  H.  M.  Myers  rent 

for  the  month,  per  check,  $75. Jan.  25.    Deposited  checks  received  for  Mdse.,  $479.80. 

Jan.  2G.    Paid  William  Hamilton  in  full  of  account,  per  check,  $298.75. Jan.  31. 

Deposited  cash  in  Homeville  Bank,  $580.45. 

Required,  total  deposits,  total  ivithdrawals,  and  balance  on  deposit. 

Form  of  Ledger  Record 
Dr.  (Deposits)  /faifL&l/tCCd    iSciOiyKy  (Withdrawals)  Cr. 


/CJ— 

i^ 

^gaA 

/600 

f 

la,  //.  Lalvd 

67 

SO 

// 

S 

// 

3^7 

60 

// 

6 

fi-OAAAi  JS.  ^VaZLq/Q^ 

6^ 

SO 

// 

// 

ft 

/OO 

// 

/^ 

JSitU,   ^OA^CxAtt 

/60 

// 

^0 

// 

^7^ 

SO 

// 

/6 

ff                  // 

76 

60 

// 

3/ 

// 

680 

¥-6 

// 

20 
26 

76 
29S 

76 

fSu^t.  (yyv  heZ/ncx^t 

// 

SI 

Balance 

23S5 

80 

3067 

76 

3057 

76 

c^^^. 

/ 

^336\so\ 

Total  deposited,  .S  3057.77;  total  withdrawn,  .1? 721. 95;  balance  on  deposit,  $2335.80. 


EXAMPLE   FOR   PRACTICE   IN   KEEPING  A   BANK  ACCOUNT 

Transactions.  —  Feb.  1,  19 — .     Opened  an  account  with  the  Gem  City  Bank,  and 

deposited  cash,  $  1000. Feb.  10.    Paid  James  Gray  in  full  of  account,  per  check, 

$87.50. Feb.  12.   Paid  J.  B.  Husted  on  account  of  salary,  per  check,  $00. Feb. 

13.    Deposited  S  479.50   cash. Feb.  15.    The   bank    has  collected   my  note  against 

Charles  Shibley,  and  has  placed  the  proceeds,  $250,  to  my  credit. Feb.  17.    Paid 

T.  J.  Gray  on  account,  per  check,  $54.70. Feb.  20.   The  bank  has  discounted  my 

note,  their  favor,  for  $1000,  and  credited  me  with  the  proceeds,  $980. Feb.  24. 

Drew  from  bank  for  personal  use,  $50. Feb.  24.   Bought  of  Gem  City  Bank,  per 

check,  their  draft  on  New   York,  for  $  500,  at  \  %  premium,  $  ?  . Feb.   27.    Paid 

S.  A.  Reed  in  full  of  account,  per  check,  $54.90. Feb.  28.    Deposited  cash,  $450. 

--—Mar.  1.    Bought  Mdse.  of  L.  D.  Harvey,  and  paid  him  per  check,  $250. Mar.  3. 

Paid  H.  II.  Gail  on  account,  per  check,  $75. Mar.  5.    Paid  Irwin  Shepard  $27.50, 

per  check,  in  full  of   account. Mar.  6.    Deposited   cash,  $375. Mar.  7.   Bought 

Mdse.  of  John   L.  Thomas,  per  check,  $17.25. Mar.  10.   Paid  James  L.  Strong  in 

full  of  all  demands,  per  check,  $87.50. 

Required,  total  deposits,  total  withdrawals,  balance  on  deposit. 


20  ACCOUNTS 

Bills  Receivable  Account 

Bills  Receivable  are  other  persons'  notes  and  acceptances  in  our  posses- 
sion, so  called  because  we,  as  holders,  are  to  receive  the  amounts  named 

therein. 

Form  of  Acceptance  Receivable 


^/OO  ^^.  Albany,  K^.,  TTIoa^A  d,  19- 

At  S^hAAtif  cLoAfo/ ^..^ .^^,^.^4\j,.....yj^j^^ht,  value  received, 

Pay  to  3^k.  €.  ^ticcCemt  f'H'j^^-frri^ ^^  order, 

€ri&  /ifu/ncU&d  and  ^^^o t74)r-fi^^^™ Dollars, 


and  charge  to  the  account  o\ 

To  2^aA>id  /K.  ^/W.  I  c^W^c^^^  14}-.  S^lAfmMcm. 


PURPOSE  OF  KEEPING  A  BILLS   RECEIVABLE  ACCOUNT 

A  Bills  Receivable  Actount  is  kept  for  the  purpose  of  showing,  at  any 
time,  the  amount  of  notes  and  acceptances  received,  the  amount  disposed 
of,  and  the  amount  on  hand. 

METHOD  OF  KEEPING  A  BILLS   RECEIVABLE  ACCOUNT 

When  another  person's  written  promise  to  pay  (note  or  acceptance) 
is  received,  its  face  amount  is  entered  on  the  Dr.  side  of  this  account. 
When  the  promise  is  redeemed,  or  the  paper  disposed  of,  its  face  value  is 
entered  on  the  Cr.  side  of  this  account.  The  excess  of  the  Dr.  side  will 
show  the  amount  of  negotiable  paper  on  hand. 

When  a  partial  payment  is  made  on  a  note  or  acceptance,  the  amount 
of  the  payment  should  be  indorsed  on  the  back  of  the  instrument,  and 
also  entered  on  the  Cr.  side  of  Bills  Receivable  account. 

See  page  126  for  indorsements. 

ILLUSTRATION  OF  KEEPING  A  BILLS   RECEIVABLE  ACCOUNT 

1.   Transactions.  —  Mar.  1.    Received  David  Burt's  note  at  90  days  in  full  of  account, 

$150. Mar.  2.     Received  D.  L.  Kiehle's  note  at  3  days  in  settlement  of  account, 

$'247.94. Mar.  3.     Received  J.  H.  Lewis's  note  at  2  months,  for  bill  of  Mdse.  sold 

him  to-day,  $79.40. Mar.  5.     Sold  C.  W.  Hyde,  on  his  note  at  2  months,  Mdse. 

amounting  to  $84.75. Mar.  6.     David  Burt  has  prepaid  his  note  of  Mar.  1,  due  in  90 

days,  in  cash,  $150. Mar.  7.     Received  Charles   Hoffman's  acceptance  at  3  days' 

sight,  my  favor,  for  $150,  in  payment  of  rent. Mar.  8.     Received  cash  for  D.  L. 

Kiehle's  note  f or  $  ?  . Mar.  9.    Received  D.  C.  Bell's  note  at  30  days  for  $  100,  to  apply 

on  account. Mar.  10.     Received  Marion  D.  Shutter's  note  at  60  days  to  apply  on 

account,    $25. Mar.    10.      Received    cash   of    C.   W.   Hyde,   on    his  note,   $50. 

Mar.  12.     Received  cash  to  apply  on  J.  H.  Lewis's  note,  $  30. 

Required,  (he  amount  received,  amount  disposed  of,  and  amount  on  hand. 


BILLS   RECEIVABLE   ACCOUNT 


21 


Form  of  Ledger  Record 


Dr. 

(Received) 

QilU 

/^o^tOuCl{}-t&       (Disposed  of) 

Cr 

/9— 

/ 

Jb.  Biivi,  a■)^  % 

f60 

mav. 

6 

(^(ik,Jb.  fSiovt 

/50 

2 

^.L.fCitkU,  /. 

^ifj 

9^ 

// 

8 

/'     h.L.fCi&ktt 

2^7 

9^ 

3 

f./f.£e.w^U,mcUa. 

79 

^0 

// 

fO 

//     ^.  Z^.  fijde. 

50 

6 

(iLM.ffyde,,     - 

S^ 

75 

// 

12 

//    /.  fi.  jC&tv^U 

30 

7 

(H.  /lfajj'nva.n,v&nt 

150 

// 

12 

Balance 

359 

15 

9 

A   ^.  Bdt,  an,  % 

/OO 

^^ 

/O 

25 

^ 

837 

09 

837 

09 

m^v. 

/2 

359 

/5 

• 

Total  debits,  $837.09;  total  credits,  $477.94;  bills  receivable  on  hand,  S  359.15. 

2.   Transactions.  —  Mar.  12.     I  have  on  hand  J.  H.  Lewis's  note  for  $49.40;  C.  W. 
Hyde's  note  for  |134.75;   Charles   Hoffman's  acceptance   for  $150;    D.  C.  Bell's  note 

for  $100;   Marion  D.  Shutter's   note   for  $25;   total  $359.15. Mar.  13..  Received 

cash  for  Charles   Hoffman's  acceptance,  $?. Mar.  15.     C.  W.  Hyde   redeems   his 

note  by  paying  cash,  $?. Mar.  15.     Received  Allen  J.  Greer's  note  at  30  days  in 

settlement  of  account,  $197.50. Mar.  16.     Received  S.  C.  Todd's  note  for  $75,  on  %. 

Mar.  17.     Received  cash  for  D.  C.  Bell's  note,  $?. Mar.  19.     Received  George 

Bell's  note  for  goods  sold  him  to-day,  $67.90. Mar.  19.     Received  cash  for  Marion  D. 

Shutter's  note,  $  ?  . Mar.  20.     Received  cash  for  J.  H.  Lewis's  note,  $?.----  Mar.  20. 

Received  Allen  J.  Greer's  check  for  $97.50,  to  apply  on  his  note. Mar.  22.     Received 

George  Bell's  check  for  $  17.90,  to  apply  on  his  note. 

Required,  the  amount  received,  the  amount  deposed  of,  and  the  amount  on  hand. 


Dr. 

(Received) 

BitU 

/^mUv 

Mb 

(Disposed  of) 

Cr. 

/9- 

mav. 

/2 

f.  f-f.  L&w-W  note. 

H 

^0\ 

\/9-\    • 
mav.  j  /3 

^Q.A 

,,  /"foj^^yyvam, 

/50 

// 

12 

(^M./lfyde.'<,    // 

3^ 

76 

// 

/5 

// 

^  la.  fi^^dt 

3^ 

75 

// 

12 

fio^'^'mcvn'  Q.  a^^;^. 

/50 

// 

/7 

// 

A  e,  Bdt 

fOO 

// 

/2 

^.  (g.  JSdt'^  naU 

/OO 

// 

/9 

// 

^kutt&v 

25 

/' 

/2 

m.K^kidleA.'Q.n 

25 

ff 

20 

// 

f.  /f.  jC&w-Cq. 

IfCf 

^0 

// 

/6 

CI.  f.  ^va&i,  an.  % 

/97 

50 

// 

20 

// 

CC.  f.  ^le&v 

97 

50 

// 

/6 

cZ.  ^.  ^add,     // 

75 

22 

// 

^&a.  Bdt 

/7 

90 

ff 

f9 

^ta.   £dt,  mcUe. 

67 

90 

// 

22 

Balance 

• 

225 

699 

55 

699 

55 

TnoA.. 

22 

225 

1 

Total  debits,  $699.55;  total  credits,  $474.55;  bills  receivable  on  hand,  $225. 


22  ACCOUNTS 


Bills  Payable  Account 


Bills  Payable  is  a  name  given  to  our  written  promises  to  pay  (notes 
and  acceptances)  issued  by  us,  because  we  are  to  pay  the  amounts  named 
therein. 

Form  of  Acceptance  Payable 


$^66^.  Minneapolis,  Ma^.,  CUi<f.  23,  19—. 

At  ^vxZ/i^  cLoA^' ^ ^!^^JC' sight,  value  received, 

Pay  to  ^JicLvt&Q,  Jb-av-v&Q^ , fL^^fi^.^^.^^ ^  or  order, 


^w-o-  /ifwyvcLveJ,  Stjtif-piv^  ^'^)^7i^^ -  Dollars, 

and  charge  to  the  account  ofvXr  i)' 
To  M.  €.  ^UodeyyiZ, 

cf&attt&,  l/lhioA. 


vJ^t^'tCha  Jt.  f-f'mtU. 


PURPOSE  OF  KEEPING  A  BILLS  PAYABLE  ACCOUNT 

A  Bills  Payable  Account  is  kept  for  the  purpose  of  showing  the  amount 
of  our  written  promises  issued,  the  amount  redeemed,  and  the  amount 
outstanding. 

METHOD  OF  KEEPING  A  BILLS  PAYABLE  ACCOUNT 

When  we  issue  our  written  promise  to  pay  money  (sign  a  note  or 
accept  a  draft),  the  face  of  the  note  or  draft  is  entered  on  the  Cr.  side 
of  this  account.  When  we  redeem  our  written  promise,  the  face  is  entered 
on  the  Dr.  side  of  this  account.  The  excess  of  the  Cr.  side  will  show 
what  we  are  owing  on  our  outstanding  written  obligations. 

Partial  payments  are  entered  on  the  Dr.  side  of  this  account,  and 
should  be  indorsed  by  the  holder  on  the  back  of  the  paper. 

ILLUSTRATION  OF  KEEPING  A  BILLS  PAYABLE  ACCOUNT 

1.  Transactions.  —  Apr.  2.   Gave  my  note  to  C.  C.  Brand,  in  settlement  of  account, 

at  10  days,  for  ^75,60. Apr.  3.   Issued  my  note  to  Allen  Hyde,   in  payment  of 

Mdse.  bought,  $275.90,  at  10  days. Apr.  3.   Passed  my  note,  at  12  days,  to  Henry 

Gold,  in  payment  of  rent  for  the  month,  fl30. Apr.  4.   Accepted  Henry  Earl's 

draft  on  me  at  3  days'  sight,  favor  of  John  Lord,  for  balance  of  account,  $148.50. 

Apr.  6.   Prepaid  my  note,  favor  of  C.  C.  Brand,  $?. Apr.  7.   Paid  Allen  Hyde 

$175.90  cash,  to  apply  on  my  note,  his  favor,  of  Apr.  3. Apr.  9.   Accepted  David 

Rowe's  draft  on  me  in  full  of  account,  at  10  days'  sight,  favor  of  A.  A.  Boyd,  for 

$97.60. Apr.  10.   Paid  my  acceptance,  favor  of  John  Lord,  due  this  day,  in  cash, 

$?. Apr.  12.   Bought  Mdse.  of  George  Gray,  on  my  note  at  30  days,  $137. 

Apr.  15.   Gave  my  note  for  $65.90  to  James  White,  in  full  settlement  of  account  as  per 
compromise. Apr.  16.    Paid  Allen  Hyde  balance  due  him  on  my  note  of  Apr.  3,  $  ?  . 

Required,  ilie  amount  of  written  promises  issued,  redeemed,  and  outstanding. 


BILLS   PAYABLE  ACCOUNT 


23 


Dr. 


(Redeemed) 


Form  of  Ledger  Record 


(Issued) 


Cr. 


f^— 

— 

— 

\/Cf- 

— 

. 

— 

a4iv. 

6 

^cMA,^M.fSuM^ci 

76 

60\ 

Cl^v. 

2 

^.(^.JSuM^cl,(yyt% 

76 

60 

tt 

7 

"     (Ztt&fv/lfifd& 

/76 

^0 

// 

d 

a.  fi^ifcie.,  ?yicUe.. 

£76 

^0 

ft 

/O 

ff     ^alim,  JLavcL 

/^8 

60 

'' 

3 

fi'&niAf  ^o-tcL,  lemt 

130 

// 

/5 

'/    (Ztts/)^ffi^cL& 

/OO 

// 

f 

/if&nA^if  (ocLit,  cyyi  % 

/^8 

60 

// 

15 

Baku  tee 

430 

50 

9 
/2 

^7 
137 

60 

^ 

// 

/6 

66 

(^0 

(^30 

60 

<^30 

60 

CL^v. 

/6 

^30 

60 

Total  issued,  :$  930.50;  total  redeemed,  ^500;  outstanding,  $430.50. 

2.   Transactions.  —  Apr.  16,  19 — .   I  have  outstanding  written  obligations  as  follows: 
Note,  favor  Henry  Gold,  $130;  acceptance,  favor  A.  A.  Boyd,  $97.60;  note,  favor  George 

Gray,  $137;  note,  favor  James  White,  $65.90;  total,  $430.50. Apr.  18.  Took  up  my 

note,  favor  Henry  Gold,  by  paying  him  one  half  cash,  and  a  new  note  for  the  balance, 

$?  . Apr.  21.   Redeemed  my  acceptance,  favor  A.  A.  Boyd,  by  paying  him  $25  in 

cash,  and  giving  him  my  note  at  5  days  for  the  balance,  $  ?  . Apr.  23.    Paid  James 

White  $25  cash,  and  gave  him  my  note  at  10  days  for  the  balance  of  my  note  of  $65.90. 

Apr.  24.    Paid  my  note,  favor  George  Gray,  with  cash,  $100,  and  my  note  at  15  days 

for  the  balance,  $  ?  . Apr.  27.  Paid  Henry  Gold  $35  cash  and  note  at  5  days  for  bal- 
ance of  my  note  of  Apr.  18,  $  ?  .----Apr.  29.  Paid  A.  A.  Boyd  $22.60,  to  apply  on  my 
note  of  Apr.  21. Apr.  30.   Paid  James  White  $20,  on  my  note  of  Apr.  23. 

Required,  the  amount  issued,  the  amount  redeemed,  and  the  amount  outstanding. 


Dr. 


(Redeemed) 


(Issued) 


Total  issued,  $67(J;  total  redeemed,  S 538.10;  outstanding,  $137.90. 


Cr. 


/9— 

/8 

fl&yiAA^  ^atcL 

/30 

/6 

^L  €.  '^Uid&nt 

^30 

60 

2/ 
i3 

(I.  d.  BcMfcl 

97 
66 

60 
90 

/8 
2/ 

a.  a.  fSc>ifci 

66 

7£ 

60 

// 

£^  ^S^V(f£.   ^hCl'lf 

/37 

// 

23 

fcLTybaa.  lytykit& 

^0 

90 

£7 

30 

a.  a.  Bjifd 

66 

20 

60 

2^ 
27 

37 
30 

// 

SO 

Balance 

137 

90 

8ata/yLe^& 

676 

00 

676 

00 

aji.v. 

30 

/37W0 

24  account;s 

EXAMPLES    FOR   PRACTICE   IN   KEEPING   A   BILLS    RECEIVABLE   ACCOUNT 

1.  Transactions.  —  May  l.'I  have  on  hand  A.  M.  Keith's  note  for  ^190;    B.  X. 
Kurd's  note  for  $75;  J.  C.  Bryden's  acceptance  for  $275;  II.  H.  Kellogg's  acceptance 

for  $195. May  3.    Sold  J.  M.  Williams,  on  his  not€  at  90  days,  Mdse.,  $74.90. 

May  4.    Received  J.  S.  Pillsbury's  note  at  30  days,  in  full  of  account,  $143.75. 

May  5.   Received  cash,  in  full  of  A.  M.  Keith's  note,  $  ?  . May  7.   Bought  a  horse 

of  B.  N".  Hurd,  giving,  in  full  payment,  his  note,  $  ?  . May  8.    Sold  J.  M.  Williams's 

note  of  $  ?  for  cash. May  9.   Sold  George  R.  Newell  Mdse.,  and  received  in  payment 

his  draft  at  one  day's  sight  on  E.  A.  Camp  for  $  157.60,  which  was  accepted  this  day. 
May  10.   Bought  for  cash  Davis  &  Co.'s  note  for  $  100. 

Required,  the  amount  received,  the  amount  disponed  of,  and  the  amount  on  hand. 

2.  Transactions.  —  May  15.   I  have  on  hand  Gale  &  Rust's  note  for  $  179.50;  Barnes 
&  Co.'s  note  for  $87.90;  C.  A.  Pillsbury's  acceptance,  my  favor,  for  $96.60;  Steele  & 

Avery's  acceptance,  favor  of  H.  A.  Gale,  for  $  76. May  21.   Bought  of  C.  A.  Pillsbury 

bill  of  iBour,  and  gave  in  payment  his  acceptance,  $  ?  . May  22.    Received  C.  S. 

Fowler's  note  for  $47.90,  in  full  settlement  of  account. May  24.   Drew  on  J.  C. 

Bryant  for  balance  of  account,  $  97.75,  and  he  returns  the  draft  accepted. May  25. 

Bought  C.  E.  Cady's  note  of  $198.75  for  cash. May  26.    Sold  Gale  &  Rust's  note 

for  cash,  $  ?  . May  26.   Received  cash  from  Steele  &  Avery,  in  full  of  their  accept- 
ance, $  ?  . May  28.   C.  S.  Fooler  redeems  his  note  in  cash,  $  ?  . 

Required,  the  amount  received,  the  amount  disposed  of,  and  the  amount  on  hand. 


EXAMPLES   FOR  PRACTICE   IN   KEEPING  A  BILLS   PAYABLE  ACCOUNT 

1.  Transactions.  —  June  1.   I  have  notes  outstanding  as  follows:   one  in  favor  of 
William  Phraner  for  $357;  one  in  favor  of  S.  G.  Howe  for  $540;  and  one  in  favor 

of  George  Fisher  for  $275.50. June  2.   Passed  my  note  to  C.  M.  Loring  for  $290 

in  payment  of  Mdse.  bought  to-day. June  4.    Paid  William  Phraner  in  full  of  my 

note,  his  favor,  $  ?  . June  6.   Issued  a  new  note,  favor  of  S.  G.  Howe,  for  $300  for 

note  due  to-day,  $?,  and  paid  him  cash  for  the  balance,  $?. June  9.    Accepted 

George  Brandreth's  draft  at  three  days'  sight,   favor  of   L.   Fisher,  for  balance  of 

account,  $135.70. June  11.   Bought  groceries,  on  my  note  at  30  days,  for  $259.80. 

June  15.   Paid  my  note,  favor  of  George  Fisher,  by  giving  him  cash,  $100,  and  a 

new  note  for  balance,  $  ?  . 

Required,  the  amount  issued,  the  amount  redeemed,  and  the  amount  outstanding. 

2.  Transactions.  —  June  16.   I  am  owing  J.  D.  Bond,  on  note,  $275;  H.  G.  Hicks, 

on  my  acceptance,  $257.50. June  16.   Gave  my  note  at  one  month  to  L.  D.  Harvey 

for  rent  to  July  1,  $65. June  18.    Accepted  A.  L.  Paris's  draft  at  6  days,  favor  of 

William  C.  Smith,  in  full  of  account,  $125.50. June  18.   Paid  cash  for  my  accept- 
ance, favor  H.  G.  Hicks,  due  this  day,  $  ?  . June  20.   Bought  Mdse.  on  my  note  at 

10  days,  of  Bell  Brothers,  $472.80. June  22.    Paid  J.  D.  Bond  cash  in  full  of  my 

note,   his   favor,   due  this  day,   $  ?  . June  23.     Accepted  W.  K.  Hicks's  draft  at 

10  days,  favor  C.  L.  Sawyer,  $197.50. June  27.    Paid  William  C.  Smith  for  my 

acceptance  of  June  18,  $?. June  29.    Passed  my  note  to  Frederick  Curtiss  for 

^98.70,  in  full  of  account. 

Required,  the  amount  issued,  the  amount  redeemed,  and  the  amount  outstanding. 


BILLS   RECEIVABLE  AND   BILLS   PAYABLE  ACCOUNTS     25 

EXAMPLES    FOR    PRACTICE   INVOLVING   BOTH   BILLS  RECEIVABLE  AND  BILLS 

PAYABLE   ACCOUNTS 

1.  Transactions.  —  July  2.  I  have  on  hand  the  following  negotiable  paper:  Barnes 
&  Co.'s  note  for  1 87.90,  due  July  12;  J.  C.  Bryant's  note,  due  July  14,  for  $47.25; 
C.  E.  Cady's  note,  due  July  10,  for  $198.75;  Hiram  Bird's  note  for  $167.50,  due  July  25; 
and  I  am  owing  on  outstanding  jjaper,  as  follows:  L.  D.  Harvey,  on  my  note  due  July  19, 
$65;  Bell  Brothers,  on  my  note  due  July  3,  $472.80;  Frederick  Curtiss,  on  my  note  dated 

June  29,  $98.70;  and  C.  L.  Sawyer,  on  my  acceptance  due  July  6,  $197.50. July  3. 

Paid  Bell  Brothers  cash  in  full  payment  of  my  note,  their  favor,  due  this  day,  $  ?  . 

July  6.   Paid   my  acceptance,  favor  of  C.  L.  Sawyer,  by  giving  him  cash,  $100, 

and  my  note  at  10  days  for  the  balance,  $  ?  . July  10.   Received  payment  of  C.  E. 

Cady,  for  his  note  due  to-day,  $  100  in  cash,  and  his  new  note  for  the  balance,  $  ?  , 

at  15  days. July  12.   Received  cash  in  full  payment  of  Barnes  &  Co.'s  note,  due 

this  day,  $  ?  . July  14.   Bought  Mdse.  of  Bell  Brothers  amounting  to  $115.75;  gave 

them  in  payment  J.  C.  Bryant's  note,  due  this  day,  $  ?  ,  and  cash  for  the  balance,  $  ?  . 

July  16.   Paid  Frederick  Curtiss  cash  in  full  of  my  note,  his  favor,  $  ?  ,  due  this  day. 

July  18.    Redeemed  my  note,  in  favor  of  L.  D.  Harvey,  due  to-morrow,  $  ?  ,  by 

paying  him  cash,  $40,  and  my  new  note  at  10  days  for  the  balance,  $  ?  . July  25. 

Hiram  Bird  redeemed  his  note,  due  this  day,  by  paying  cash,  $  100,  and  a  new  note  for 

the  balance,  at  30  days,  $  ?  . July  30.     Passed  my  note  to  Brown  Brothers,  in 

settlement  of   account,  $78.50. July  31.    Paid  L.  D.  Harvey  cash   in   full  of  my 

note,  $?. July  31.   Received  C.  H.  Child's  note  at  one  month,  in  full  of  account, 

$221.50. 

Required,  amount  of  others'  paper  received^  my  paper  issued,  others'  paper  disposed  of 
my  paper  redeemed,  others'  paper  on  hand,  and  my  paper  outstanding. 

2.  Transactions.  —  Aug.  1.  We,  Th.  E.  Student  and  C.  C.  Curtiss,  enter  into  part- 
nership this  day  under  the  firm  name  of  Student  &  Curtiss.  Th.  E.  Student  con- 
tributes, with  other  resources,  a  note,  his  favor,  dated  July  6,  19 — ,  drawn  at  one  month 
without  grace,  for  $  750,  signed  by  Adams  &  Briggs ;  a  draft,  his  favor,  dated  July  3,  drawn 
by  Davis  &  Earl  on  Frink  &  Gage,  at  thirty  days'  sight,  for  $250,  and  accepted  July  5. 

The  firm  assumes,  for  Th.  E.  Student,  his  note  at  two  months,  without  grace,  favor 

of  Hughes  &  Irving,  dated  June  4,  19 — ,  for  $75;  his  acceptance  of  Jones  .&  King's 
draft  at  sixty  days'  date,  from  June  12,  19 — ,  without  grace,  for  $  125,  in  favor  of  Lane 

&  Myers. Aug.  1.   C.  C.  Curtiss  contributes,  with  other  resources,  a  note  made  by 

Newton  &  Ogden,  his  favor,  dated  May  5,  at  three  months,  without  grace,  for  $500;  a 
draft,  his  favor,  dated  May  5,  drawn  by  Penny  &  Quincy  on  Rich  and  Steel,  at  90  days' 

sight,  for  $350,  and  accepted  May  17. The  firm  assumes  for  C.  C.  Curtiss  his  note  at 

three  months  from  May  7,  favor  of  Utley  &  Vance,  for  $  175 ;  his  acceptance  of  Wise  & 
Co.'s  draft,  favor  of  Young  &  Zier,  for  $  140,  drawn  May  10,  at  ninety  days,  and  accepted 

May  12. Aug.  2.   Received  Aaron  Brown's  note  at  thirty  days,  for  $55,  on  account. 

Aug.  3.  Bought  Mdse.  on  our  note  at  two  months,  of  Castle  &  Dunn,  for  $450. 

Aug.  6.    Received  cash  in  full  of  Adams  &  Briggs's  note,  $  ?  . Aug.  7.   Paid  cash  in 

full  of  C.  C.  Curtiss's  note,  favor  of  Utley  &  Vance,  $  ?  . Aug.  10.   Passed  our  note  to 

Evans  &  Folds,  at  ten  days,  in  full  of  account,  for  $150. Aug.  11.   Paid  Th.  E. 

Student's  acceptance,  favor  Lane  &  Myers,  per  check,  $  ?  . Aug.  15.    Received  cash  in 

full  of  Rich  &  Steel's  acceptance,  favor  of  C.  C.  Curtiss,  $  ?  . 

Required,  the  standing  of  the  Bills  Receivable  account  and  the  standing  of  the  Bills  Pay- 
able account. 


26  ACCOUNTS 

BUSINESS   ACCOUNTS 

Business  Accounts  are  those  which  are  kept  for  the  purpose  of  ascer- 
taining the  current  condition  of  a  business  by  exhibiting  its  losses  and 
its  gains. 

Business  enterprises  are  undertaken  for  the  purpose  of  obtaining  a 
livelihood,  or  acquiring  wealth,  and  all  those  accounts  which  are  used  to 
show  the  progress  of  the  business  —  the  gains  or  the  losses  —  are  called 
Business  Accounts.  • 

A  person  engaged  in  the  buying  and  selling  of  goods  would  use  Mer- 
chandise account  to  represent  the  progress  of  the  business ;  one  engaged 
in  manufacturing  would  use  Manufacturing  account ;  one  engaged  in 
a  professional  business,  as  lawyer,  doctor,  teacher,  etc.,  would  use 
Service  account;  one  engaged  in  agency  work  would  use  Commission 
account,  etc. 

Merchandise  Account 

Merchandise   means   those  wares,  goods,  or   commodities   which   are 

bought   and   sold   with   ^view   to   profit,   but    does    not    include    real 

estate.  ^ 

PURPOSE  OF  KEEPING  A  MERCHANDISE  ACCOUNT 

A  Merchandise  Account  is  kept  for  the  purpose  of  showing  the  cost 
of  goods  purchased,  the  proceeds  from  the  sales,  and  the  gains  or  losses 
which  result  in  dealing  therein. 

METHOD  OF  KEEPING  A  MERCHANDISE  ACCOUNT 

The  value  of  the  merchandise  on  hand  at  the  time  of  opening  the 
account,  and  the  cost  of  all  subsequent  purchases,  are  entered  on  the  Dr. 
side  of  this  account.  The  proceeds  from  the  sales  are  entered  on  the  Cr. 
side  of  this  account.  If  the  goods  are  all  sold,  the  excess  of  the  Cr.  side 
will  show  a  gain,  or  the  excess  of  the  Dr.  side  will  show  a  loss.  If  the 
goods  are  not  all  disposed  of,  the  market  value  of  those  remaining  on  hand 
must  be  added  to  the  Cr.  side  of  this  account  before  finding  the  excess  of 
either  side. 

ILLUSTRATION  OF  KEEPING  A  MERCHANDISE  ACCOUNT 

1.   Transactions.  —  Aug.  1,  19 — .     Mdse.  on  hand  is  valued  at  ^1050. Aug.  2. 

Bought  Mdse.  of  Marshall  Field  &  Co.  for  cash,  .|1575. Aug.  3.     Sold  Mdse.  to  E.  H. 

Hallock  for  cash,  ^97.80. Aug.  4.     Sold  Mdse.  to  M.  Blethen,  on  credit,  ^176.50. 

Aug.  6.     Bought  Mdse.  of  J.  Walker  &  Co.,  on  credit,  ^987.50. Aug.  7.     Cash  sales 

of  Mdse.  this  day  amount  to  $376.80. Aug.  9.     Sold  H.  S.  Parks,  on  credit,  Mdse., 

$37.50.-— Aug.  10.     Sold  Mdse.  to  S.  G.  Howe,  on  his  note  at  60  days,  $497.80.-— 

Aug.  11.     Sold  H.  G.  Hicks,  on  credit,  Mdse.,  $76.40. Aug.  13.     Cash  sales  to-day  of 

Mdse.,  $246.80. 

Aug.  14.     Value  of  Mdse.  unsold,  $2547.80. 

Required,  the  cost  of  Mdse.,  the  proceeds,  and  the  gain  or  the  loss. 


MERCHANDISE  ACCOUNT 


27 


Dr. 


(Cost) 


Form  of  Ledger  Record 


(Proceeds) 


Cu. 


/ 

'l}a.ttc&  o-ru  ha^'ivd 

f060 

CiltCf. 

8 

^aJi,  fi^Ma^k 

97 

80 

/' 

£ 

(^ou^krm.^.vto. 

1575 

// 

^ 

Ifl  R&tk&fv,  o■■>^  % 

/76 

60 

// 

6 

f.V>oitke.vV^o.. 

987 

50 

// 

7 

^cM.k,  oftim..  ^atm- 

376 

80 

// 

14 

Gain 

U4 

90 

ff 

9 

/if.  c/.  cPa.1^3.,  cm  % 

87 

60 

/ 

ft 

/O 

KtU  Re.^.  f-fcnv-e. 

^97 

80 

/ 

// 

// 

/if.  ^.  /fU/o^,  cyyi  % 

76 

¥-0 

/ 

// 

/3 

^a^k,  ^wyv.  ^cite^ 

2^6 

80 

/^ 

JSa.tam^e^ 

• 

H 

Balance,  Inventory 

254.7 

80 

^067 

^0 
80 

^067 

^0 

CUocf. 

^6^7 

Total  cost,  $3612.50;  total  proceeds,  $4057.40;  gain,  $444.90. 

2.   Transactions.  —  Aug.  15.    Value  of  Mdse.  on  hand,  $2547.80. Aug.  16.    Bought 

of  George  Wilson,  on  credit,  Mdse.,  $1785. Aug.  17.     Sold  Thomas  Catlin,  on  credit, 

Mdse.,  $176.40. Aug.  18.     Cash  sales  to-day,  of  Mdse.,  $237.60. Aug.  20.     Sold 

Theodore  Dwight,  on  his  note  at  30  days,  Mdse.,  $  1 98.70. Aug.  21 .     Sold  W.  J.  Evans, 

on  credit,  Mdse.,  $47.90. Aug.  22.     Cash  sales  of  Mdse.  to-day,  $247.90. Aug.  23. 

Sold  Charles  Carroll,  on  credit,  $18.37,  Mdse. Aug.  24.     Bought  of  Thomas  Simpson, 

on  ray  note  at  90  days,  Mdse.,  $548.56. Aug.  29.    Bought  of  Thomas  Rand,  on  credit, 

Mdse.,  $374.80. 

Aug.  31.     Value  of  unsold  Mdse.,  $4190.12. 

Required,  tlie  cost  of  Mdse.,  the  proceeds,  and  the  gain  or  the  loss. 


Dr. 


(Cost) 


Form  of  Ledger  Record 


(Proceeds) 


Cr. 


/6 

l}aUo&  cyyi  koA^ci 

26^-7 

80 

/9- 

/7 

3^.  ^attU,  o-yv  % 

/76 

^0 

ff 

/6 

^&o-.  l/iKU<yyi,o-n% 

/786 

ff 

/8 

^a^k,  oJwn.  ^J.t&2y 

237 

60 

ff 

21/. 

/Situ  S>aAf.  ^.  c/! 

6^/-8 

66\ 

ff 

20 

/SLtURe^.  ^v-Ufkt 

/98 

70 

ff 

29 

<^k.  Rcunci,  (yyi  % 

87¥- 

80 

ff 

2/ 

W^.  f.  €v<Mi^,  an  % 

^7 

90 

/ 

ff 

22 

(^^Oy^k,  ^ti'yv.  ^at&Qy 

2^7 

90 

y/ 

ff 

23 

^.  ^iAx>tt,  an  % 

/8 

37 

X 

ff 

31 

Balance,  Inventory 

4190 

12 

/3ala/}t(S^& 

31 

Loss 

139 

17 

6266 

/6\ 

6266 

/6 

/Znla. 

8/ 

^/90 

72\ 

Total  cost,  $  5256.16;  total  proceeds,  $5110.99;  loss,  $  139.17. 


28 


ACCOUNTS 


Special  Merchandise  Accounts 

When  it  is  desired  to  ascertain  the  gain  or  the  loss  resulting  from 
dealing  in  any  particular  kind  of  property,  such  as  dry  goods,  groceries, 
live  stock,  etc.,  the  cost  and  the  proceeds  should  be  entered  under  a  title 
chosen  to  represent  that  property. 

ILLUSTRATION   OF   KEEPING  SPECIAL   MERCHANDISE  ACCOUNTS 

1.   Transactions,  —  Sep.  1,  19 — .    I  have  on  hand  dry  goods  valued  at  ^3450,  and 

groceries  valued  at  $2975. Sep.  3.    Cash  sales  of  dry  goods  are  $174.90;  groceries, 

$157.60. Sep.  4.    Sold  Otis  Pray,  on  credit,  dry  goods,  $49.50;   groceries,  $39.70. 

Sep.  5.    Sold  D.  Holbrook,  on  credit,  groceries,  $05.80;   dry  goods,  $54.80. 

Sep.  6.    Sold  David  Cochran,  on  his  note  at  30  days,  dry  goods,  $29.50;   groceries, 

$74.90. Sep.  8.    Bought  of  Amos  Kellogg,   on  my  note   at   90  days,   dry  goods, 

$796.50;    groceries,   $659.40. Sep.  8.     Sold  James  Bronson,   on   credit,   groceries, 

$77.40. 

Sep.  8.   Inventory:   dry  goods,  $3745.90;  groceries,  $3388.10. 

Required,  the  gain  or  the  loss  on  dry  goods  and  the  gain  or  the  loss  on  groceries. 


Dr. 


(Cost) 


JBbxm.  of  Ledger  Record 


lAi  cjaaa 


V 


(Proceeds) 


Cr. 


/ 

Jn.u&ntavyr 

3^60 

S 

(Ha^k 

//f 

90 

// 

8 

mU  ia^joiUe. 

7^6 

60 

// 

^ 

HtU  S'vay 

^9 

60 

/ 

// 

6 

A  /M(}.'u>ak 

6^ 

80 

X 

// 

6 

fSitU,  R&<^&iv-a,{}-t& 

29 

60 

X 

// 

8 

Balance,  Inventory 

3745 

90 

£ata/yi<?.& 

// 

s 

Loss 

191 

90 

¥-^^6 

60 

^2^6 

60 

^e4,. 

a 

87^6 

90\ 

1 

Cost,  $4246.50;  proceeds,  including  inventory,  $4054.60;  loss,  $191.90. 


Dr. 

(Cost) 

Suxit^bUo^ 

(Proceeds) 

Cb 

/9- 

/ 

Jnv-&ntavy 

2976 

/9- 

3 

€<m.k 

/67 

60 

// 

8 

fSitU^  S*aA^CL6't& 

669 

¥-0 

// 

^ 

UtiA^  S^'ULl^ 

39 

70 

- 

8 

Gain 

169 

10 

// 

6 

^.  /M^-vao^ 

■66 

80 

X 

// 

6 

fSitt^  /^e(S^&Cv~ci6-l& 

7^ 

90 

y^ 

// 

8 

fami.&a^  ^'LO-no^an 

77 

^0 

f5cita.'yi^& 

ff 

8 

Balance,  Inventory 

3388 

10 

3803 

60 

3803 

60 

c/^;^. 

8 

3388 

/O 

Cost,  $3634.40;  proceeds,  including  inventory,  $3803.50;  gain,  $169.10. 


MERCHANDISE   ACCOUNTS 


29 


2.    Transactions.  —  Oct.  1,  10 — .    I   have  on  hand  hardware  valued  at  $4875,  and 

carpets  valued  at  $4025. Oct.  0.    The  cash  sales  of  hardware  for  the  week  amount 

to  $215.75 ;  of  carpets,  $210.15.     The  sales  of  hardware  for  notes  amount  to  $98.25. 

Oct.  13.  The  sales  of  carpets  for  the  week  on  notes  amount  to  $165.98;  the  cash  sales 
of  hardware  amount  to  $198.15,  and  carpets,  $205. Oct.  13.  Bought  of  J.  S.  Pills- 
bury,  on  my  note  at  60  days,  a  bill  of  hardware  amounting  to  $875.50. Oct.  15. 

Bought  of  A.  J.  Mullen,  on  credit,  a  bill  of  carpets  amounting  to  $1100. Oct.  17. 

Bought  of  Folds  &  Co.,  on  my  note  at  90  days,  invoice  of  hardware,  $900. Oct. 

20.   The  cash  sales  of  hardware  for  the  week  amount  to  $187.75;  of  carpets,  $218.50; 

the  sales  of  hardware  on  notes  amount  to  $198.60. Oct.  27.     The  cash  sales  of 

hardware  for  the  week  amount  to  $207.50;  of  carpets,  $204.20;  the  sales  of  carpets  on 

notes  amount  to  $176.40. Oct.  27.    Bought  of  Washburn  &  Co.  invoice  of  carpets 

amounting  to  $800,  for  my  note  at  90  days. 

Oct.  31.   Inventory:  hardware,  $5738.65;  carpets,  $5594.50. 

Required,  the  gain  or  the  loss  on  hardware  and  the  gain  or  the  loss  on  carpets. 


Dr. 


(Cost) 


Form  of  Ledger  Record 


(Proceeds)* 


Cb. 


/ 

<Jrt\>-&nt(yi/i^ 

^■S75 

6 

^cJi' 

2/6 

76 

// 

/3 

BUu  ^OAfoMe. 

876 

60 

// 

6 

fSiti^  R&€&iv-aM-t& 

98 

26 

// 

// 

//             ft 

^00 

/' 

13 

(EaoJv 

1^8 

/6 

ft 

SI 

Gain 

194 

15 

// 

20 

// 

/87 

76 

X 

// 

20 

fSLiUy  Re^&iv-ou{>-t& 

/98 

60 

y^ 

// 

27 

&aJv 

207 

60 

JSata/n^e 

66 

// 

SI 

Balance  y  Inventory 

57S8 

65 

6s^^ 

68^^ 

66 

€<d. 

3/ 

6738 

66 

Dr. 


Cost,  SGGoO.SO;  proceeds,  including  inventory,  $6844.65;  gain,  S  15)4.15. 
(Cost)  ^dVfiJbt^  (Proceeds) 


Cr. 


/f- 



19— 

— 

— 

€^1. 

/ 

^yiiyt^tcyiif 

^/-626 

€^L 

6 

^aoA 

2/0 

/6 

// 

/6 

a.  f.  TliulUn 

/  fOO 

// 

/3 

fSitta.  R&e^&iv-aAt& 

/66 

98 

ff 

27 

8ilU  ^OAfO-lyit 

800 

// 

/3 

ta^li 

206 

ff 

SI 

Gain 

249 

7S 

// 

20 

// 

2/8 

60 

X 

// 

27 

// 

20^ 

20 

y^ 

// 

27 

Bitta^  R&e,&Ov-a(}-t& 

/76 

^0 

Ma,ta/n(p& 

// 

SI 

Balance^  Inventory 

5594 

50 

677^ 

73 

677^ 

73 

€.et. 

3/ 

66^^ 

60 

Cost,  $6525;  proceeds,  including  inventory,  $6774.73;  gain,  $249.73. 


30  ACCOUNTS 


EXAMPLES  FOR  PRACTICE  IN  KEEPING  MERCHANDISE  ACCOUNTS 

1.  Transactions.  —  Oct.  1.     The  Mdse.  on  hand  this  day  is  valued  at  $2575. 

Oct.  2.    Bought  of  Leslie  Lane,  on  credit,  a  bill  of  goods  amounting  to  $1496.50. 

Oct.  3.   Sold  James  French,  on  credit,  Mdse.  amounting  to  $76.40. Oct.  6.   The 

cash  sales  of  Mdse.  for  the  week  amount  to  $  249.53. Oct.  8.   Sold  George  Hunt,  on 

credit,  Mdse.  amounting  to  $97.80. Oct.  10.   Sold  John  A.  Nichols,  on  his  note  at 

63  days,  Mdse.  amounting  to  $148.75. Oct.  13.    The  cash  sales  of  Mdse.  for  the 

week  amount  to  $321.70. Oct.  13.   Bought  of  C.  A.  Pond,  on  my  note  at  90  days,  a 

bill  of  goods  amounting  to  $  694.75. 

Oct.  15.   Inventory  of  unsold  Mdse.  this  day  amounts  to  $4156.75. 

Required,  the  cost  of  Mdse.,  the  proceeds,  and  the  gain  or  the  loss. 

2.  Transactions.  —  Oct.  15.    The   Mdse.  on  hand,  as  per  inventory,  is  valued  at 

$4156.75. Oct.  16.  Bought  of  Jerome  Nelson,  on  my  note  at  60  days,  a  bill  of  goods 

amounting  to  $945.50. Oct.  17.    Sold  Orlando  Hopkins,  on  his  note  at  30  days, 

Mdse.,  $197.80. Oct.  18.    Sold  A.  D.  Brown,  on  credit,  Mdse.,  $76.50. Oct.  19. 

Sold  Simeon  North,  on  his  note  at  one  month,  Mdse.,  $96.75. Oct.  20.   Cash  sales  of 

Mdse.  for  the  week  amount,  per  tickets,  to  $417.80. Oct.  22.   Bought  a  bill  of  goods 

of  George  R.  Finch,  on  credit^p^ 875.50. Oct.  23.    Sold  James  R.  Dunn,  on  credit, 

Mdse.,  $  96.75. Oct.  24.    S61d  Wilson  Phraner,  on  his  note  at  one  month,  goods 

amounting  to  $  86.45. 

Oct.  25.   Inventory  of  Mdse.  on  hand  amounts  to  $  5331.84. 

Required,  the  cost  of  Mdse.,  the  proceeds,  and  the  gain  or  the  loss. 

3.  Transactions.  —  Oct.  25.    I   have  on  hand  Mdse.,  per  inventory,  $5331.84. 

Oct.  25.    Sold   W.  J.  Evans,  on  his  note  at  3   months,  Mdse.,  $176.40. Oct.  26. 

Bought  of  Silas  Prince,  on  my  note  at  30  days,  a  bill  of  goods  amounting  to  $  976.50. 

Oct.  27.    Cash  sales  of  Mdse.,  as  per  tickets,  $279.80. Oct.  27.   Sold  Jerome  Allen 

Mdse.  amounting  to  $239.60,  for  which  received  his  note  at  60  days  for  $150,  and  cash 

for  the  balance,  $?  . Oct.  29.    Sold  D.  L.  Kiehle  Mdse.  amounting  to  $437.90,  for 

which  received  David  Burt's  note,  favor  of  Kiehle,  for  $  250,  and  cash  for  the  balance, 

$?. Oct.  29.    Sold  W.  W.  Pendergast  a  bill  of  goods  amounting  to  $198.75,  and 

received  in  payment  my  note,  favor  C.  W.  G.  Hyde,  for  $  125,  and  cash  for  the  balance, 

$  V  . Oct.  29.   Cash  sales,  as  per  tickets,  $  147.94. Oct.  30.    Bought  of  J.  A.  Weld 

a  bill  of  goods  amounting  to  $  1565.75,  and  gave  in  payment  cash,  $  1000,  and  my  note 
at  30  days  for  the  balance,  $  ? . 

Oct.  31.    The  Mdse.  remaining  unsold,  as  per  inventory,  is  valued  at  $6254. 

Required,  the  cost  of  Mdse.,  the  proceeds,  and  the  gain  or  the  loss. 

4.  Transactions  (Dry  Goods  and  Lumber).  —  Nov.  1.   I  have  on  hand  a  stock  of 
dry  goods  valued,  as  per  inventory,  at  $4250,  and  a  stock  of  lumber  valued  at  $5270. 

Nov.  2.    Sold  E.  J.  Phelps,  for  cash,  a  bill  of  lumber,  $175.80. Nov.  3.   Sold 

Henry  Staples,  on  credit,  a  bill  of  dry  goods,  $97.80. Nov.  5.   Sold  David  Savage, 

on  his  note  at  30  days,  a  bill  of  lumber,  $195.60. Nov.  6.   Sold  AV.  E.  Hale,  on  his 

acceptance,  my  favor,    a  bill  of  dry  goods,  $169.50. Nov.  7.    Bought  of   Camp  & 

Walker,   on  my   note   at  60   days,   an   invoice    of    lumber,   $1475. Nov.    8.    Sold 

C.  M.  Jordan,  on  his  note  at  90  days,  a  bill  of  dry  goods,  S  157.50. Nov.  9.   Bought 

of  John  A.  Thomas  &  Co.  an  invoice  of  dry  goods,  giving  him  cash,  $  400,  and  my  note 


MERCHANDISE  ACCOUNTS  31 

at  30  days  for  the  balance,   |350. Nov.  10.    Cash  sales*  for  the  week,  of  lumber, 

$490. Nov.  12.    Sold  W.  J.  Crosby  a  bill  of  dry  goods,  $375.00,  receiving  cash, 

$  175.60,  and  his  note  at  30  days  for  the  balance,  $  ?  . Nov.  13.  Bought  of  the  North- 
western Lumber  Co.  an  invoice  of  lumber,  $1250,  and  paid  them  cash,  $750,  and  my 

note  at  GO  days  for  the  balance,  $  ?  . Nov.  14.   Sold  C.  M.  Dickney  a  bill  of  lumber 

for  $478.50,  on  credit. Nov.  15.   Bought  of  S.  Cooper  &  Co.  an  invoice  of  dry  goods, 

$975,  paying  them  cash,  $500,  and  my  note  at  2  months,  without  interest,  for  the 
balance,  $  ?  . 

Nov.  15.  The  dry  goods  on  hand  are  valued  at  $5100,  and  the  lumber  on  hand  is 
valued  at  $0850.10. 

Required,  the  gain  or  the  loss  on  dry  goods,  and  the  gain  or  the  loss  on  lumber. 

5.  Transactions  (Dry  Goods  and  Lumber,  continued). — Nov.  15.  I  have  on  hand 
a  stock  of  dry  goods  valued,  per  inventory,  at  $5100;  and  a  stock  of  lumber  valued, 

per  inventory,  at  $0850.10. Nov.  16.    Sold  W.  U.  Clark,  on  his  note  at  30  days,  a 

bill  of  dry  goods,  $148.50. Nov.  19.    Sold  Charles  Claghorn,  on  credit,  a  bill  of 

lumber,  $247.60. Nov.  20.    Sold  James  W.  Lusk  dry  goods,  $79.50;  and  lumber, 

$  216.27  ;  received  cash  for  one  third,  $  ?  ;  balance  charged  on  account,  $  ?  . Nov.  22. 

Sold    Samuel    Cochrane   a   bill   of   lumber,  $397.50,  and  a  bill  of   dry  goods,  $165; 

received  cash  for  one  third,  and  his  note  at  30  days  for  the  balance,  $  ?  . Nov.  24. 

Bought  of  T.  B.  Walker  lumber,  per  invoice,  $2460;  paid  him  cash  for  one  third,  $  ?  ; 

balance  on  credit,  $?. Nov.  26.     Bought  of  Marshall  Field,  as  per  invoice,  dry 

goods,  $  2250 ;  paid  him  cash  for  one  third,  $  ?  ;  gave  him  my  note  at  60  days  for  the 

balance,  $  ?  . Nov.  27.    Sold  John  T.  ITinman,  on  his  note  at  90  days,  lumber,  $  137.25. 

Nov.  28.   Sold  J.  L.  Hunt,  on  his  note  at  3  months,  dry  goods,  $  249.75. Nov.  30. 

Sold  William  H.  Maxwell,  dry  goods,  $175..50;  lumber,  $164.50;  received  his  check  for 
$  140,  and  his  note  at  60  days  for  the  balance,  $  ?  . 

Nov.  30.   Inventory  of  dry  goods,  $  6736 ;  inventory  of  lumber,  $  9310. 

Required,  the  gain  or  the  loss  on  dry  goods,  and  the  gain  or  the  loss  on  lumber. 

6.  Transactions  (Coal  and  Wood).  —  Dec.  1.   Bought,  for  cash,  200  tons  hard  coal, 

assorted,  at  $4.50,  $  ?  . Dec.  3.    Bought  of  Seth  Low,  on  credit,  190  tons  soft  coal,  at 

$3.10,  $  ?  . Dec.  4.    Sold,  for  cash,  12  tons  hard  coal,  at  $5.60,  $  ?  .----Dec.  5.    Sold 

Robert  TTale,  on  credit,  9  tons  soft  coal,  at  $  4.10,  $  ?  . Dec.  6.  Bought  of  J.  E.  Bell,  on 

my  note  a,*;  60  days,  150  cords  maple  wood,  at  $3.90,  $  ?  . Dec.  7.   Bought  of  C.  C. 

Brand,  on  my  note  at  30  days,  90  cords  pine  wood,  at  $1.05,  $  ?  . Dec.  8.   Sold  E.  J. 

Phelps,  on  credit,  8  cords  maple  wood,  at  $5,  $?. Dec.  10.    Sold  II.  A.  Gale,  on 

credit,  11  tons  hard  coal,  at  $5.60,  $?;   5  cords  maple  wood,  at  $5,  $  ?  . Dec.  12. 

Sold  T.  J.  Gray,  on  credit,  14  tons  soft  coal,  at  $4.10,  $?. Dec.  13.    Sold  George 

Finck,  on  credit,  6  cords  pine  wood,  at  $1.50,  $  ?  . Dec.  15.    Sold,  for  cash,  7  cords 

maple  wood,  at  $5,  $?. Dec.   15.     Sold  M.  D.  Rowley,  on  credit,  16  tons  hard 

coal,  at  $5.60,  $?. Dec.  17.    Sold,  for  cash,  9  cords  pine  wood,  at  $1.50,  $?. 

Dec.  18.    Sold  H.  H.  Gail,  on  credit,  11  cords  maple  wood,  at  $5,  $  ?  . Dec.  19.    Sold 

W.  E.  Hale,  on  credit,  25  tons  hard  coal,  at  $5.60,  $?;  6  tons  soft  coal,  at  $4.10; 
total,  $  ?  .--r-Dec.  20.  Sold,  for  cash,  8  tons  soft  coal,  at  $4.10,  $  ?  ;  27  cords  maple 
wood,  at  $  5,  $  ?  . 

Dec.  31.  On  hand  ?  tons  hard  coal,  at  $4.50,  $  ?  ;  ?  tons  soft  coal,  at  $3.10,  $  ?  ; 
total  coal,  $  ?  :  ?  cords  maple  wood,  at  $3.90,  $  ?  ;  ?  cords  pine  wood,  at  $1.05,  $  ? ; 
total  wood,  $  ?  . 

Required,  the  gain  or  the  loss  on  coal,  and  the  gtun  or  the  loss  on  wood. 


32 


ACCOUNTS 


Shipment  Accounts 

When  merchandise  is  isent  away  to  be  sold  for  and  on  account  of  the 
shipper,  the  rec6rd  of  the  shipment,  the  cost,  and  the  proceeds  or  returns 
from  sales  are  kept  in  a  Shipment  account. 

PURPOSE   OF   KEEPING   SHIPMENT   ACCOUNTS 

A  Shipment  Account  is  kept  for  the  purpose  of  showing  the  gain  or 
loss  on  merchandise  sent  away  to  be  sold  for  and  on  account  of  the 
shipper. 

METHOD   OF   KEEPING   SHIPMENT   ACCOUNTS 

The  value  of  the  goods  shipped  and  the  expenses  incurred  are  entered 
on  the  Dr.  side  of  the  shipment  account,  and  the  returns  or  proceeds  are 
entered  on  the  Cr.  side  of  the  account.  The  excess  of  the  Cr.  side  of  this 
account  will  show  a  gain  ;  or  the  excess  of  the  Dr.  side  will  show  a  loss. 

ILLUSTRATION^  OF   KEEPING   SHIPMENT   ACCOUNTS 

1.  Transactions.  —  July  %  19 — .  Shipped  from  goods  in  store  to  Packard  &  Co., 
New  York,  to  be  sold  on  my  account  and  risk,  a  bill  valued  at  $750. July  31.  Re- 
ceived an  account  sales  of  shipment  to  Nevsr  York  ;  net  proceeds,  $825,  remitted. 

Required,  the  gain  or  the  loss. 


Dr. 


(Cost) 


Form  of  Ledger  Record 


(Proceeds)        Cr. 


SI 

Gain 

760 
75 

3/ 

^a^k 

826 

S£6 

00 

826 

00 

Proceeds,  .S825;  cost,  $750;  gain,  $75. 


2.   Transactions.  —  Aug.  1,  19 — .    Shipped   from   store   to   Brown  &  Co.,  Chicago, 

goods  valued  at  $497.60,  to  be  sold  on  my  account  and  risk. Aug.  3.    Shipped  to 

Baltimore,  and  consigned  to  Sadler  &  Co.,  to  be  sold  on  my  account  and  risk,  goods  from 

store  valued  at  $960.50. Aug.  10.    Shipped  to  Brown  &  Co.,  Chicago,  to  be  sold  on 

my  account  and  risk,  goods  from  store  invoiced  at  $795.75. Aug.  18.   Received  from 

Brown  &  Co.,  Chicago,  an  account  sales  of  the  goods  shipped  them  Aug.  1,  showing  net  pro- 
ceeds to  our  credit,  $477.36. Aug.  18.   Shipped  from  store,  and  consigned  to  Sadler 

&  Co.,  Baltimore,  to  be  sold  on  my  account  and  risk,  goods  invoiced  at  $627.30. 

Aug.  20.    Received  an  account  sales  from  Sadler  &  Co.,  Baltimore,  of  the  goods  shipped 

them  Aug.  3;  net  proceeds,  $1050.75,  remitted  by  draft  on  New  York. Aug.  30. 

Received  an  account  sales  of  the  shipment  to  Brown   &  Co.,  Chicago,  Aug.  10;  net 
proceeds,  in  the  hands  of  the  consignee,  $860.45. Aug.  31.   Received  from  Sadler  & 


SHIPMENT  ACCOUNTS 


33 


Co.,  Baltimore,  an  account  sales  of  the  goods  shipped  them  Aug.  18;   net  proceeds 
passed  to  my  credit  are  $598.60. 

Required,  the  f/ain  or  loss  on  the  shipments  to  each  city. 

Note,  —  Several  shipments  to  the  same  firm  may  be  entered  under  one  head,  as  illustrated 


below. 


Dr. 


(Cos 


Form  of  Ledger  Record 

t)  ^Iliyp^nybrit/Qy   ta    (^hAAncm  (Proceeds)  Cr. 


ICf 

CCnui. 

/ 

mcU&. 

M.  / 

¥-97 

60 

f9— 

/8 

£%<yiAmV^.  cAi>.  / 

¥77 

36 

ff 

fO 

// 

cAa.2 

7^6 

7'5 

// 

SO 

M.  2 

860 

¥6 

// 

31 



Gain 

JfJf 

46 

/-^ 

/337 

8/ 

/337 

8/ 

• 

Dr. 


Proceeds,  iji?  1337.81;  cost,  $1293.35;  gain,  $44.4(). 
(Cost)      ^hAypTyUtmjto^   ta    BcdytiMl&hb      (Proceeds)  Or. 


iq— 

6(^UCf. 

// 
// 

/8 
31 

Gain 

(^60 

627 
61 

60 
30 
50 

Ctucf. 
// 

20 
3/ 

ofcLciteA.V(^.c4o:2 

/050 
6^8 

76 
60 

/6¥9 

3-5 

/6¥9 

36 

Proceeds,  $1649.35;  cost,  $1587.80;  gain,  $61.50. 

EXAMPLE  FOR  PRACTICE   IN  KEEPING  SHIPMENT  ACCOUNTS 

Transactions.  —  Sep.  1,  19 — .   Shipped  wheat  to  Buffalo,  consigned  to  J.  C.  Bryant, 

to  be  sold  on  my  account  and  risk,  invoiced  at  .|2150. Sep.  3.    Shipped  1000  bus. 

potatoes  to  New  Orleans,  consigned  to  George  Soule,  to  be  sold  on  my  account  and  risk, 

invoiced  at  45^,  |?  ;  drayage,  $17.25. Sep.  5.    Shipped  corn  to  Albany,  consigned 

to  E.  G.  Folsom,  to  be  sold  on  my  account  and  risk,  invoiced  at  $428.50. Sep.  8. 

Shipped  barley  to  Milwaukee,  consigned  to  R.  C.  Spencer,  invoiced  at  $1750. Sep.  10. 

Shipped   to   Cleveland,   consigned    to    E.    R.   Felton,   rye,   invoiced   at   $1987.50. 

Sep.  14.    Received  an  account  sales  of  wheat  shipped  to  Buffalo;  net  proceeds,  $2365. 

Sep.  15.    Shipped  J.  R.  Camp,  Cincinnati,  barley,  invoiced  at  $1590. Sep.  20. 

Received  from  E.  G.  Folsom,  Albany,  an  account   sales  of  corn  shipped  Sep.  5;  net 

proceeds    to    my   credit    are    $460.50. Sep.   24.     Received    from    R.    C.    Spencer, 

Milwaukee,  an   account  sales  of  barley  shipped   Sep.   8 ;   net  proceeds  to  my  credit 

are  $1649. Sep.  25.     Received  from  E.  R.  Felton,  Cleveland,  an  account  sales  of 

rye   shipped   Sep.  10;  net  proceeds  to  my  credit  are   $2185.70. Sep.  29.  Received 

from  J.  R.  Camp,  Cincinnati,  an  account   sales  of  barley  shipped   Sep.  15;   net  pro- 
ceeds to  my  credit  are  $1568.70. Oct.  1.   Received  from  George  Soule,  New  Orleans, 

an  account  sales  of  1000  bus.  potatoes  shipped  to  him  Sep,  3;  the  net  proceeds  amount 

I  to  $  587.75,  for  which  he  inclosed  his  note  at  10  days,  with  interest,  dated  Sep.  27,  19 — . 
Required,  the  gain  or  loss  on  each  shipment. 


34  ACCOUNTS 

Real  Estate  Account 

Real  Estate  means  houses  and  lands  ;  immovable  property,  as  dis- 
tinguished from  personal  or  movable  property. 

The  ownership  of  merchandise  may  be  transferred  from  one  party  to 
another  by  simple  agreement  and  delivery  ;  the  ownership  of  real  estate 
is  transferred  or  conveyed  by  a  deed. 

A  Deed  is  a  writing  on  parchment  or  paper,  for  the  purpose  of 
conveying  real  estate,  authenticated  by  the  seal  of  the  party  transferring 
it,  and  by  his  acknowledgment  to  a  notary  public  or  other  proper 
official. 

PURPOSE   OF   KEEPING   A   REAL   ESTATE   ACCOUNT 

A  Real  Estate  Account  is  kept  for  the  purpose  of  sli owing  the  cost 
of  houses  and  lands  purchased  ;  the  cost  of  subsequent  improvements, 
repairs,  taxes,  etc.  ;  the  proceeds  from  sales  and  rents ;  and  the  gain 
or  loss  resulting  from  dealing  in  real  estate. 


METHOD   OF   KEEPING   A   REAL   ESTATE   ACCOUNT 

The  value  of  real  estate  on  hand  at  the  time  of  opening  the 
account,  and  the  cost  of  all  subsequent  purchases,  improvements,  repairs, 
and  taxes  are  entered  on  the  Dr.  side  of  the  account.  The  proceeds 
from  sales  and  rent  are  entered  on  the  Cr.  side  of  the  account.  If  the 
property  is  all  sold,  the  excess  of  the  Cr.  side  will  show  the  gain,  or 
the  excess  of  the  Dr.  side  will  show  the  loss.  If  the  property  is  not 
all  disposed  of,  the  market  value  of  that  on  hand,  together  with  rents 
accrued  but  not  paid,  must  be  added  to  the  Cr.  side,  and  the  unpaid 
taxes,  etc.,  must  be  added  to  the  Dr.  side,  before  finding  the  excess  of 
either  side. 


ILLUSTRATION   OF  KEEPING  A   REAL  ESTATE  ACCOUNT 

1.   Transactions.  —  June  1,  19 — .   I  own  a  house  and  lot  on  West  Main  St.  valued  at 

$3750. June  2.    Bought  a  lot  and  two-story  bouse,  No.  47  Loring  Av.,  for  cash, 

12900. June  9.     Paid  $15  cash  for  repairs  on  AVest  Main  St.  house. June  15. 

Received   cash   for  rent  of  AVest  Main   St.  house,  $35. June   16.     Paid  taxes  on 

Loring  Av.  property,  $75. ----June  18.     Bought  store  and  lot.  No.  25  Broadway,  on 

my  note,  for  $3150,  secured  by  mortgage  on  the  property. June  20.    Received  cash 

for  rent  of  Loring   Av.   property,   $27.50.---- June   23.     Received    cash    for   rent    of 

Broadway  store,  $115. June  25.    Sold  West  Main  St.  house  and  lot  for  cash,  $4000. 

"--June  26.    Paid  cash  for  repairs  of  store,  25  Broadway,  $63.75. June  27.    Sold 

my  Loring  Av.  property  for  $  3200  on  mortgage. 

.time  30.   Estimated  value  of  my  Broadway  property  is  $  3300. 

Required,  the  gain  or  the  loss  in  dealing  in  real  estate. 


HEAL   ESTATE   ACCOUNT 


35 


Dr. 


(Cost) 


Form  of  Ledger  Record 


(Proceeds) 


Cr. 


/9- 

/ 

ff.vL.ia.maU 

3/60 

/9- 

/6 

^(mA,  la.  TriaU 

36 

ft 

2 

€a^k,  Lo-il/ncfCLv-. 

2^00 

// 

20 

"       £avCn(^6l-v-. 

27 

60 

/f 

^ 

-  10:  nuu 

16 

// 

23 

"      26JS'ci'if. 

//6 

// 

/6 

"     L(yivyic^Civ~. 

76 

// 

26 

"     W.  IflouU 

^000 

// 

/8 

d'.V.£.  26  fS'cU^ 

3/60 

f/ 

27 

Tflavt.  fLcyiLyicfCiv-. 

3200 

// 

26 

(^aoA,             " 

63 

76 

// 

SO 

Balance,  Inventoi^ 

3S00 

" 

so 

Gain 

723 

75 

/-^ 

/0677 

60 

/0677 

60 

fun& 

SO 

3300 

f 

Total  proceeds,  $10,077.50;  total  cost,  $9953.75;  gain,  $723.75. 


2.  Transactions.  —  July  2.     I  have   on   hand  a   store   and  lot,  No.  25  Broadway, 

valued  at  $3300. July  2.   Bought,  for  cash,  house  and  lot,  No.  47  Oak  St.,  $4250. 

July  3.    Received  cash  for  rent  of  store  for  July,  $115. July  5.   Paid  cash  for 

insurance  of  house,  $37.50. July  6.    Received  cash  for  rent  of  house,  July,  $45. 

July  7.    Bought  house  and  lot,  97  East  Main  St.,  for  cash,  $7500. July  20. 

Sold  store  and  lot,  25  Broadway,  for  cash,  $3600. July  21.    Paid  cash  for  insurance 

on  house,  97  East  Main  St.,  $50. July  25.    House,  47  Oak  St.,  destroyed  by  fire 

July  18;  received  cash  in  settlement  of  loss,  $3000. July  30.   Paid  cash  for  plumbing 

in  house,  97  East  Main  St.,  $  55. 

July  31.   Value  of  East  Main  St.  property,  $7500;  lot,  47  Oak  St.,  $1000. 

Required,  the  gain  or  the  loss. 


Dr. 


(Cost) 


Form  of  Ledger  Record 


(Proceeds) 


Cr. 


fuUf 

2 

^.VjC.  26 £' hi' if 

3300 

'9- 

3 

^^v,26^'ci'if 

//6 

2 

/-f.VL.^/ilak^'L 

^260 

// 

6 

//      ^7  Hal  ^t. 

y-6 

// 

6 

^a^k,  Jyt^.    /' 

37 

60 

// 

20 

//      26  fS'cL'if 

3600 

// 

7 

f-f.VL.  €.  mcuU 

7600 

ff 

26 

-     ^7  (Hak  ^t. 

3000 

// 

2/ 

^OQyk,  JuQ,.       t' 

60 

f/ 

SI 

Bal.,  Invt.jE.  Main 

7500 

// 

30 

//      ^Uuyyv{)-in(f 

66 

// 

// 

Oak  St. 

1000 

// 

31 

Gain 

67 

50 

^--^ 

16260 

00 

/6260 

00 

futif\3/ 

8600\ 

Total  proceeds,  $15,2()0;  total  cost,  $  15,192.50 ;  gain,  .SG7.50. 


36 


ACCOUNTS 


Special  Real  Estate  Accounts 

To  ascertain  the  gain  or  the  loss  on  any  distinct  piece  of  property,  the 
cost  and  the  proceeds  should  be  recorded  under  a  special  title  represent- 
ing that  property. 

ILLUSTRATION   OF  KEEPING  SPECIAL  REAL  ESTATE   ACCOUNTS 

Transactions.  —  July  2,    19 — .    Bought   house   and    lot,   No.    97    Colfax    Av.,    for 

$12,500,  cash. July  6.    Bought  store  and  lot,  No.  74  Center  St.,  for  $15,000,  half 

cash  and  "  half   mortgage. July  7.   Paid   cash   for   repairs  on  Colfax  A  v.  property, 

$18.75. July  7.    Paid   cash   for  repairing  roof  of  store  on  Center  St.,  $75.60. 

July  10.   Paid  cash  for  insurance  on  Colfax  A  v.  property,  $47.50,  and  on  Center  St. 

property,  $67.50;    total,  $?. July  12.    Paid  cash    for   taxes   on    store   and   lot,  74 

Center  St.,  $152.75. July  16.    Received  cash  for  rent  of  house,  97  Colfax  A  v.,  for 

July,   $110. July   16.   Received  for  rent  of  first  floor  and   basement  of   store,  74 

Center  St.,  for  July,  $180. Aug.  16.    Received  cash  for  rent  of  house,  97  Colfax 

Av.,  for  August,  $110. Aug.  20.    Store,  No.  74  Center  St.,  was  destroyed  by  fire  Aug. 

15;    received  cash  from  the  insurance  company,  in  full  settlement  of  loss,  $10,000. 

Aug.  31.  Estimated  value-oi  Colfax  Av.  property,  $  14,000 ;  value  of  lot  on  Center 
St.,  $3000. 

Required,  the  gain  or  the  loss  on  each  piece  of  property. 


Dr. 


Form  of  Ledger  Record 
(Cost)     H(m/3bb    2^  Lot,    f  7   (^0tjCi%   CLv-.     (Proceeds)         Cb. 


^ 

(^AM^h, 

/2600 

/6 

^a^/v,  Re.nt 

//O 

" 

7 

//           R&^^C'hQy 

/8 

76 

Clu(f. 

/6 

//           // 

f/O 

// 

/O 

'/      JnQ^uva>n(S^& 

^7 

50 

// 

31 

Balance,  Inventory 

14000 

Aug. 

31 

Gain 

1653 

75 

= 

^-^ 

1^220 

00 

/^^20 

00 

CCiuf. 

3/ 

/^OOO 

Total  proceeds,  $14,220;  cost,  $12,566.25;  gain,  $1653.75. 
Dr.  (Cost)    ^tahb    y^    Lot,    JV-    (S^&nt&V    M.    (Proceeds)  Cr. 


6 

€a^kVmait.S>ay 

foOOO 

/6 

^UlqJi,  Rtnt 

/80 

ff 

7 

'f    R&'^xii^ 

75 

60 

6iu.cf. 

20 

//       Jno,.  ^0-. 

/OOOO 

// 

/O 

'f     Jno^uvcLft^e' 

67 

60 

// 

31 

Balance  Inventory 

3000 

f/ 

/2 

/52 

75 

// 

31 

Loss 

2115 

85 

/6i!(jf5 

85 

/52(^5 

85 

(Zuxf 

8/ 

3000 

Cost,  $15,295.85;  total  proceeds,  $13,180;  loss,  $2115.85. 


REAL  EJSTATE   ACCOUNTS  37 

EXAMPLES   FOR   PRACTICE   IN   KEEPING  REAL  ESTATE   ACCOUNTS 

1.   Transactions,  —  Aug.  1.   I  have  in  possession  a  house  and  lot,  No.  79  Broad  St., 

vakied  at  |4500,  and  a  store  and  lot,  No.  94  East  Main  St.,  valued  at  $12,000. Aug.  4. 

Bought  of  John  S.  Pillsbury,  on  my  note  at  3  years,  secured  by  mortgage  on  the 

property,  house  and  lot,  54  Pillsbury  A  v.,  for  $9575. Aug.  10.    Paid  cash  for  repairs 

on  house,  79  Broad  St.,  $127.50. Sep.  1.    Received  cash  for  rent  of  house,  79  Broad 

St.,  $40. Sep.  1.    Received  cash  for  rent  of  store,  94  P:ast  Main  St.,  $105;  and  for 

rent  of  offices  on  second  floor,  $42,  for  August. Sep.  1.    Received  cash  for  rent  of 

house  and  lot,  54  Pillsbury  Av.,  from  Aug.  10  to  date,  $50. Sep.  15.    Paid  cash  for 

new  walk  in  front  of  store,  94  East  Main  St.,  $175. Oct.  1.    Received  cash  in  full 

for  rent  of  house  and  lot,  54  Pillsbury  Av.,  for  September,  $75. Oct.  1.    Received 

cash  for  rent  of  house,  79  Broad  St.,  for  September,  $40. Oct.  1.   Received  for  rent 

of  store,  94  East  INIain  St.,  $105;  for  rent  of  offices,  second  floor,  $42,  for  September. 

Oct.  10.    Paid  cash  to  Charles  Wilkins  for  plumbing  in  house  on  Pillsbury  Av., 

$14.75. Oct.  15.   Paid  taxes  on  house  and  lot,  79  Broad  St.,  for  one  year,  $i}7.()0. 

Oct.  15.   Paid  cash  for  taxes  on  store  and  lot,  94  East  Main  St.,  $100.30. Oct.  31. 

Paid  Thomas  Forster's  bill  for  carpenter  work  on  Pillsbury  Av.  property,  $37.50  in 

cash. Nov.  1.   Received  $75  of  Dr.  W.  H.  Hall  for  rent  of  house  and  lot,  54  Pillsbury 

Av.,  for  the  month  of  October. Nov.  1.   Received  cash  for  rent  of  house,  79  Broad  St., 

$40;    for  rent  of  store,  $105;  for  rent  of  offices,  $42;  total,  $?  . Dec.  1.   Received 

cash  for  rent  of  house,  79  Broad  St.,  $40. 

Dec.  31.  House  and  lot,  79  Broad  St.,  is  valued  at  $5000;  store  and  lot,  94  East 
Main  St.,  at  $12,500;  house  and  lot,  54  Pillsbury  Av.,  at  $9750;  rent  due  and  unpaid 
on  house,  J9  Broad  St.,  one  month,  $40;  on  store  and  offices,  2  months,  at  $147,  $  ?  ;  on 
house  and  lot,  54  Pillsbury  Av.,  for  2  months,  at  $75,  $  ?  . 

Required,  (he  r/ain  or  the  loss  on  each  piece  of  property. 


2.  Transactions.  —  Sep.  1,  19 — .  I  own  the  following  property :  house  and  lot, 
97  Park  Av.,  valued  at  $13,500;  three-story  store  and  offices,  27  Front  St.,  valued  at 
$16,000;  office  building,  47  and  49  Broadway,  $11,000. ----Sep.  1.  Paid  cash  for 
insurance  of  Park  A  v.  house,  for  $12,000,  at  |%,  $  ?  ;  Front  St.  store,  $12,000,  at  1^%, 
$?;  Broadway  building,  $9000,  at  1|%,  $?.---- Sep.  3.  Collected  cash  for  rent  for 
September,    as    follows:    Park   Av.    house,   $100;    Front  St.    store,   $125;    Front    St. 

offices,   $96;    Broadway  building,    $180. Sep.    15.     Paid    cash    for   water    tax    on 

Broadway    building,    $18.75. Sep.    20.      Paid   water    tax    on    Front    St.    property, 

$22.30.--- Sep.  22.  Bought  house  and  lot,  14  Gold  St.,  for  cash,  $7500. ----Oct.  1. 
Received  cash  for  rents  for  October  as  follows:  Park  A  v.  house,  $100;  Front  St. 
store,  $125;   Front  St.  offices,  $96;   Broadway  building,  $180;    Gold  St.  house,  $45. 

Oct.  13.   S.  C.  Smith  presents  his  bill  for  repairs  as  follows,  which  I  allow:   On 

Broadway  building,  $28.75;   on  Front  St.  store,  $29.60;   on  Park  Av.  house,  $41.60. 

Nov.  1.   Collected  rents  for  November,  in  cash:   Park  Av.  house,  $100;  Front  St. 

store,  $125;  Front  St.  offices,  $96;  Broadway  building,  $180;  Gold  St.  house,  $45.---- 
Nov.  10.    Paid  cash   for  plumbing,  as  follows:    Park   Av.  house,   $15.75;   Front  St. 

store,  $8.30;  Broadway  building,  $22.40;  Gold  St.  house,  $17.90. Dec.  1.   Collected 

cash  for  rent  for  December,  as  follows:  Park  Av.  house,  $100;  Front  St.  store,  $125; 
Froht  St.  offices,  $96 ;  Broadway  building,  $180;  Gold  St.  house,  $45. 

Dec.  31.  Value  of  Park  A  v.  property,  $  13,750 ;  Front  St.,  $  16,000 ;  Broadway,  $  10,000 ; 
Gold  St.,  $7250. 

Required,  the  gain  or  the  loss  on  each  piece  of  property. 


38  ACCOUNTS 

Interest  Account 

If  we  use  other  people's  money,  we  may  pay  them  for  the  use  thereof  ; 
and  if  other  people  use  our  money,  we  may  receive  pay  from  them  for 
its  use.     This  compensation  for  the  use  of  money  is  called  Interest. 

PURPOSE   OF   KEEPING  AN   INTEREST  ACCOUNT 

An  Interest  Account  is  kept  for  the  purpose  of  showing  the  cost  of 
using  others'  money,  and  the  income  from  loaning  our  money. 

METHOD   OF   KEEPING  AN   INTEREST   ACCOUNT 

The  value  of  interest  accrued  in  our  favor  and  owing  to  us  at  the 
time  of- opening  the  account,  and  the  subsequent  cost  of  using  the  money 
of  others,  are  entered  on  the  Dr.  side  of  the  Interest  account.  The  value 
of  interest  accrued  against  us  and  owing  by  us  at  the  time  of  opening  the 
account,  and  the  subsequent  income  from  loaning  our  money,  are  entered 
on  the  Cr.  side  of  this  account.  At  the  time  of  closing  the  account,  if 
no  interest  has  accrued  which  remains  unpaid,  the  excess  of  the  Cr.  side 
will  show  a  net  gain ;  and  the  excess  of  the  Dr.  side  will  show  a  net  loss. 
If  any  interest  has  accrued  in  our  favor  which  has  not  been  entered,  it 
must  be  added  to  the  Cr.  side  ;  and  if  any  interest  has  accrued  against  us 
which  has  not  been  entered,  it  must  be  added  to  the  Dr.  side,  before 
finding  the  excess  of  either  side. 

Discount.  —  A  discount  or  abatement  allowed  by  one  party  to  another 
for  the  payment  of  a  debt  before  it  is  due,  is  equivalent  to  payment  for 
the  use  of  the  present  worth  of  the  debt.  If  the  discount  is  allowed  hy 
us,  the  amount  of  the  discount  is  entered  on  the  Dr.  side  of  Interest 
account ;  and  if  the  discount  is  allowed  to  us,  its  amount  is  entered  on 
the  Cr.  side  of  this  account.  Discounts  calculated  on  debts  due  in  the 
future  are  entered  in  opening  or  closing  Interest  account,  on  the  same 
principle  as  that  which  governs  the  entries  of  accrued  interest. 

ILLUSTRATION   OF  KEEPING  AN   INTEREST   ACCOUNT 

1.   Transactions.  —  Aug.  1.     The  interest  accrued  on  my  outstanding  notes  amounts 

this  day  to  ^27.30. Aug.  1.     The  interest  accrued  on  others'  notes  .which  I  hold, 

amounts  this  day  to  ^49.60. Aug.  4.     Paid  for  interest  due  on  my  note  this  day, 

^7.25. Aug.  8.     Received  cash  for  interest  due  on  D.  L.  Kiehle's  note,  ^17.42. 

Aug.  13.     Paid  cash  for  interest  on  my  note,  ^21.90. Aug.  15.     Received  cash  from 

A.  D.  Brown,  for  interest  now  due  on  his  note,  f  35.90. Aug.  18.    Received  cash  from 

O.  V.  'i'ousley,  for  interest  on  his  note,  $35.47. Aug.  25.     Received  cash  for  interest 

due  from  C.  B.  Gilbert,  $14.75. 

Aug.  31.  T  am  owing  interest  on  outstanding  notes,  $82.79;  interest  accrued  ou 
others'  notes  which  I  hold,  amounts  to  $19.47. 

Required,  the  net  grdn  or  the  net  loss  in  interest  for  the  month  of  August. 


INTEREST   ACCOUNT 


39 


(Cost) 


Form  of  Ledger  Record 


(Proceeds) 


Cb. 


/^„ 

1 

,q— 

^'^ 

CLUCJ: 

/ 

(Jyvv-cm^tiybi^ 

^/-q'^60 

(Lwcf. 

/ 

Jy^ue^nto-vy, 

£7 

30 

// 

^ 

ta^k 

7 

£5 

// 

<? 

^aoA 

/7 

^2 

// 

/c? 

ft 

2/ 

CfO 

// 

/J 

// 

35 

^0 

// 

SI 

Balance,  Inventory 

82 

79 

// 

/<5^ 

tf 

36 

^7 

y 

// 

i'J 

// 

/f 

76 

y^ 

// 

^i 

Balance,  Inventory 

ip 

47 

fSa.ta.n<^& 

// 

Loss 

ii 

23 

/6/ 

5^ 

/6/ 

6^ 

da^tcf. 

3/ 

/^ 

.r 

Oi/lUf. 

8£ 

7^ 

Total  cost,  $161.54;  total  proceeds,  $  150.31 ;  net  loss,  $11.23. 

2.   Transactions.  —  Sep.    1.     Interest    accrued   on    my  outstanding   notes,    $14.90; 

interest  accrued  on  others'  notes  which  I  hold,  $27.90. Sep.   10.     Allowed   R.   F. 

Jones  for  prepayment  of  his  note,  $7.95. Sep.  14.     G.  W.  Brown  allowed  me  for 

prepaying  my  note,  $17.50. Sep.  17.    Prepaid  my  note,  favor  of  James  Rich ;  discount 

off,  $14.85. Sep.  20.    Moses  Beech  prepays  his  note;  discount  off,  $11.18. Sep.  21. 

Paid  cash  for  interest  on  my  note,  favor  of  W.  S.  Rowe,  $17.81. Sep.  26.    S.  G.  Howe 

prepays  his  note,  my  favor,  and  I  allow  him  the  discount,  $6,45. Sep.  27.   Prepaid 

my  note,  favor  of  Ray  Jones,  at  a  discount  of  $47.15. Sep.  28.    S.  M.  Howe  allows  me 

a  discount  of  $  42.96  for  prepaying  my  note. 

Sep.  29.  Discount  on  notes  in  my  favor,  not  bearing  interest,  $64.30;  discount  on 
my  outstanding  notes,  which  do  not  bear  interest,  $38.96;  interest  accrued  on  others* 
notes  which  I  hold,  $  33.18. 

Required,  the  cost  of  interest,  the  proceeds  of  interest,  and  the  net  gain  or  net  loss. 


Dr. 


(Cost) 


Form  of  Ledger  Record 


(Proceeds) 


Cr. 


/ 

/O 

27 
7 

qo 

/9- 
tf 

/ 

Situ  <^ayciU& 

/7 

qo 

60 

// 

20 

//                  // 

// 

/8 

ff 

/7 

ff             ff 

/^ 

86 

// 

2/ 

(goWl 

// 

8/ 

// 

27 

ff             ff 

^7 

/6 

// 

26 

fSitU^  R&<s^&iA}<i>6-t& 

6 

^6 

ff 

28 

//             // 

^2 

^6 

tf 

29 

Balance f  Inventory 

64 

30 

'' 

29 

Balance,  Inventory 

72 

H 

ft 

29 

Gain 

73 

91 

£ala.ni?^& 

20(? 

6o\ 

20^ 

60 

^e.^.^29 

72\/¥- 

c/f^.lJ'^ 

6^ 

30 

Total  proceeds,  $20S).50;  total  cost,  $135.59;  net  gain,  $73.91, 


40  ACCOUNTS 

EXAMPLES   FOR  PRACTICE   IN   KEEPING   AN   INTEREST   ACCOUNT 

1.  Transactions.  —  Oct.  1,  19 — .  The  interest  accrued  on  my  outstanding  written 
obligations  amounts  to  $21.45,  and  the  interest  accrued  on  notes  which  I  hold  amounts 

to  $;36.95.----Oct.  2.   Paid  S.  S.  Russell  for  interest  on  my  note  now  due,  $12.47. 

Oct.  4.    Received  from  I.  C.  Jones  for  interest  on  his  note  due  to-day,  $15.61. Oct.  6. 

The  Homeville  Bank  has  discounted  my  note  at  90  days,  retaining  $  12.75  for  interest. 

Oct.  8.    Thomas  L.  Bell  has  prepaid  his  note,  my  favor,  and  I  have  allowed  him  the 

interest,  $24.75. Oct.  10.   Paid  my  note  of  $300,  with  interest  at  6%  for  6  months 

and  3  days,  $  ?  . Oct.  12.   Prepaid  my  note,  favor  of  Otto  Miller,  and  was  allowed  the 

discount,  $18.50. Oct.  14.    Received  of  C.  L.  Gilbert  cash  in  full  of  his  note  and 

interest ;  interest,  $  15.60. Oct.  15.   Henry  Hahn  has  prepaid  his  note,  my  favor,  and  I 

have  allowed  him  the  regular  discount,  $  9.78. 

Oct.  15.  I  am  owing  accrued  interest  on  my  outstanding  notes,  $11.50,  and  there  is 
owing  me  $7.60  on  interest-bearing  notes  which  I  hold. 

Required,  the  cost  of  interest,  the  proceeds  of  interest,  and  the  net  gain  or  the  net  loss. 


2.  Transactions.  —  Oct.  15,  19 — .  The  discount  on  my  outstanding  notes  to  maturity 
is  $33.85;  the  discount  on  not^s-in  my  favor  to  maturity  is  $24.25;  the  interest  accrued 
on  my  outstanding  notes  is  ^27.15;  and  the  interest  accrued  on  others'  notes  which  I 

hold  is  $37.48. Oct.  16.    Received  from  M.  H.  Hurd  $9.74,  in  payment  of  interest  on 

his  note. Oct.  18.   Paid  C.  H.  Spencer  $13.50,  for  interest  on  my  note,  his  favor. 

Oct.  19.  C.  H.  Chute  has  prepaid  his  note,  my  favor,  and  I  have  allowed  him  the  dis- 
count, $13.40. Oct.  20.    Prepaid  my  note,  favor  of  W.  B.  Hixon,  at  a  discount  of 

$17.96. Oct.  22.   Collected  $19.76  of  Newton  Rowe  for  interest  on  his  note,  my  favor. 

Oct.  25.   Prepaid  my  note,  favor  of  Henry  Dole,  at  a  discount  of  $4.27. 

Oct.  31.  Discount  on  my  outstanding  notes  to  maturity  is  $  10.50 ;  discount  on 
others'  notes,  my  favor,  to  maturity  is  $  9.75 ;  interest  accrued  on  my  outstanding  notes 
is  $  16.25 ;  interest  accrued  on  others'  notes,  my  favor,  is  $22.72. 

Required,  the  cost  of  interest,  the  proceeds,  and  the  net  gain  or  the  net  loss. 


3.  Transactions.  —  Nov.  1,  19 — .  The  interest  accrued  on  my  outstanding  written 
obligations  amounts  to  $86.40;  and  the  interest  accrued  on  others'  notes,  which  I  hold, 
amounts  to  $107.60;  the  discount  to  maturity  on  my  outstanding  written  obligations 
not  bearing  interest  is  $49.60;  and  the  discount  to  maturity  on  others'  notes,  my  favor, 

not  bearing  interest  is  $39.65. Nov.  10.   Paid  J.  H.  Dunn  cash  for  interest  due  on 

my  note,  his  favor,  $37.95. Nov.   12.     Received   from    George   Burrill   $47.90  for 

interest  on  his  note,  my  favor. Nov.  15.    C.  H.  Chute  has  prepaid  his  note,  my  favor. 

and  I  have  allowed  the  legal  discount,  $7.29. Nov.  20.    Prepaid  my  note,  favor  of 

A.  Anderson,  and  he  has  allowed  the  legal  discount,  $37.40. Nov.  22.    Paid  R.  1). 

Russell  in  full  of  my  note  and  interest;  face  of  note,  $200;  interest,  $14. Nov.  27. 

Robert  Jamison  has  prepaid  his  note,  my  favor,  and  I  ha-ve  allowed  the  discount, 
$  16.40. 

Nov.  30.  Interest  accrued  to  date  on  others'  notes  which  I  hold,  $  65.25 ;  interest 
accrued  on  my  outstanding  notes,  $44.85;  discount  at  legal  rate  on  notes,  in  my  favor, 
not  bearing  interest,  $  14.65 ;  discount  on  my  outstanding  written  obligations  not  bearing 
interest,  $  10.80. 


Required,  the  cost,  the  proceeds,  and  the  net  gain  or  the  net  lo.<is  on  interest. 


EXPENSE  ACCOUNT  41 


Expense  Account 

In  the  prosecution  of  any  kind  of  business  there  are  outlays  or 
expenses  incident  thereto,  such  as  rent,  hired  labor,  fuel,  office  expenses, 
etc.,  which  usually  it  is  most  convenient  to  enter  under  a  general 
title. 

If  it  is  desired,  however,  to  show  the  outlay  in  any  particular  direction, 
such  as  rent,  insurance,  advertising,  stationery,  storage,  drayage,  freight, 
office  furniture,  or  the  like,  separate  records  must  be  kept  under  special 
titles  chosen  to  represent  such  expenditures.  All  of  these  special  expense 
accounts  are  kept  in  the  same  manner  as  the  general  expense  account. 

PURPOSE   OF   KEEPING   AN   EXPENSE   ACCOUNT 

An  Expense  Account  is  kept  for  the  purpose  of  showing  the  cost  of 
expenses  incurred,  in  conducting  a  business,  and  usually  includes  such 
items  of  expenditure  as  clerk  hire,  fuel,  lights,  stationery  for  use  of 
business,  rent  of  building,  etc. 

METHOD   OF   KEEPING   AN  EXPENSE   ACCOUNT 

When  an  expense  is  incurred,  the  cost  thereof  is  entered  on  the  Dr. 
side  of  the  Expense  account.  Ordinarily  there  will  be  no  entry  on 
the  Cr.  side.  If,  however,  there  are  any  returns,  they  should  be  entered 
on  the  Cr.  side.  The  excess  of  the  Dr.  side  will  show  the  cost  of  con- 
ducting the  business. 

At  the  time  of  closing  the  account,  if  any  expense  has  been  incurred 
which  has  not  been  entered,  it  must  be  added  to  the  Dr.  side,  and  if  any 
expense  has  been  entered  which  has  not  been  used,  it  must  be  added  to 
the  Cr.  side,  before  finding  the  excess. 

ILLUSTRATION   OF   KEEPING  AN   EXPENSE   ACCOUNT 

1.    Transactions.  —  Feb.  2,  19 — .    Paid  John  Thompson  for  rent  of  rooms  for  the 

month,  1 8,  and  |7.50  for   1   ton  of   coal;   total,  $15.50. Feb.  3.     Paid  cash   for 

stationery  for  general  use,  f  1.25. Feb.  5.     Paid   cash   for  cleaning  rooms,  $1.75. 

Feb.  6.    Paid   Thomas  Davidson   for  repairing  clothes,  $3.50. Feb.   10.    Paid 

cash  for  laundry,  to   date,  »$1.40. Feb.   12.    Paid   Mrs.   Charles  Dolliver   cash    for 

2  weeks'  table  board,   at  $4,  $8,  and   for  laundry,  $1.18;  total,   $9.18. Feb.  20. 

Paid  cash  for  2  theater  tickets,  $1.50. Feb.  28.    Paid  Mrs.  Charles  Dolliver  cash 

for  table  board  to  date,  2  weeks  at  $4,  $8;  and  gas  bill  foi:  the  month,  $1.05;  total, 

$9.05. Feb.  28.    Charles  N.  Crandle  paid  me  $7   for  use  of  my  rooms  for  the 

month. 

Feb.  28.  I  have  used  about  \  of  the  coal  bought  Feb.  1,  leaving  $5.63  worth 
of  coal  on  hand. 

Required,  the  net  cost  of  expenses  for  the  month. 


42 


ACCOUNTS 


Form  of  Ledger  Record 


Dr. 

(Cost) 

€oc/^ 

tno^t 

(Returns) 

Cb 

" 

2 

Re.nt  V  ^aaC 

/  5 

50 

28 

(^o^qA,  Remt 

7 

// 

3 

oftatunieAyu 

/ 

25 

// 

28 

Bah,  Invt,  Coal 

5 

63 

/' 

6 

(^t&a.ni'yicf  RaoAyvQ, 

/ 

75 

// 

28 

Loss 

30 

50 

// 

6 

ReZ/a^aWcf  ttotke^ 

3 

50 

/ 

// 

10 

La.u'yiclvy, 

/ 

^0 

/ 

ff 

/2 

ISacuvcL  V  L'cLvif 

9 

/8 

/ 

tt 

20 

^ktateA. 

/ 

50 

/ 

ft 

28 

Satanic. 

9 

05 

/ 

^3 

/3 

^3 

/3 

S^&L. 

28 

5 

63 

Total  cost,  $43.13;  returns,  $12.63;  net  cost,  $30.50. 

2.   Transactions.  —  Mar.  1,  19 — .   Paid  cash  in  advance  for  3  months'  rent,  $450. 

Mar.  1.   Paid  cash  for  1  year's  insurance  from  date,  $60. Mar.  2.   Bought  3  tons 

of  coal  for  cash,  at  $7.50,$?. Mar.  3.    Paid  cash  for  office  stationery,  $7.25. 

Mar.  5.    Paid  cash   for >  postage   stamps,  $3.25. Mar.  15.    Paid  cash   for  cleaning 

office,  $  2.75. Mar.  20.   Received  cash  for  use  of  desk  room  in  office  for  the  month, 

$10. Mar.  31.    Paid  clerk  hire  for  the  month,  $65. Mar.  31.    Paid  drayage  for 

the  month,  $11.75. 

Mar.  31.  The  value  of  unexpired  rent  is  $300;  unexpired  insurance,  $55;  unused 
coal,  $11.25. 

Required,  the  net  cost  of  expenses  for  the  month. 


Dr. 

(Cost) 

§%p 

&7^^& 

(Returns) 

Cb 

I. 

/^  — 

/ 

€xiLQyk,  R&^^t 

^50 

20 

^(mA,  ^&qA  Rao-ni 

/O 

/f 

/ 

"      JnoyiAA^c^n^a 

60 

ff 

31 

Bal.j  Invt.j  Bent 

300 

// 

2 

//      dLaat 

22 

50 

ff 

ff 

„          Ins. 

55 

// 

3 

t>     ■^tat\x>n&\Af 

7 

25 

ff 

ff 

Coal 

11 

25 

// 

5 

//      ^afitacfe. 

3 

25 

ff 

ff 

Loss 

2Jf6 

25 

15 
3/ 

tf      Ue.xJc  /i^Ue. 

2 

65 

75 

y 

// 

3/ 

tf      ^va.jacj& 

/  / 

75 

^ 

622 

50 

622 

50 

mav. 

3/ 

366 

25 

Total  cost,  $622.50;  total  returns,  $376.25;  net  cost,  $246.25. 


r 


EXPENSE  ACCOUNT  43 


EXAMPLES   FOR   PRACTICE   IN   KEEPING  AN   EXPENSE   ACCOUNT 


1.  Transactions. — Jan.  1,  10 — .    Bought  of  S.  C.  Gale,  on  credit,  4  tons  of  coal, 

at  $8,  $?  . Jan.  2.    Paid  W.  H.  Lyon  cash  for  rent  of  store  for  8  months,  at  .^125, 

$?. Jan.  3.    Bought  of  Western  Fuel  Company,  on  credit,  2  cords  of  maple  wood, 

at  $6,  f  ?. Jan.  4.    Paid  cash  for  postage  stamps,  $3.()0. Jan.  5.    Paid  Brown, 

Treacy  &  Co.'s  bill  for  stationery  for  office  use,  $14.75. Jan.  16.    Paid  cash  for  clerk 

hire  to  date,  $35. Jan.  20.    Received  from  S.  A.  Reed  $9.50  cash  for  desk  room  in 

office  for  the  month  of  January. 

Jan.  31.    I  am  owing  Henry  C.  Butler  for  services  as  bookkeeper  for  the  month, 

$75;  due  Frederick  II.  Curtiss  for  services  as  clerk,  $i^. The  estimated  value  of 

coal  unused  is  $16;  the  estimated  value  of  wood  unused  is  $6;   unexpired  rent  for  2 
months  at  $125  is$?  . 

Required,  the  net  cost  of  expenses  for  the  month. 

2.  Transactions.  —  Apr.    1,    19 — .    Paid  John   Thompson  $150,   cash,   for  rent  of 

office   for  3   months. Apr.  3.    Paid  cash  for  cleaning,  $1.50. Apr.  5.   Received 

cash  from  George  Daggett  for  use  of  office  3  months  from  Apr.  1,  $100. Apr.  7. 

Paid  $3.20   for  postage   stamps  for   office    use. --^- Apr.  15.    Paid  Jesse    Curtiss  for 

service   as  clerk   to   date,  $20. Apr.  18.    Bought   for  office  use  stationery,  $12.30, 

paying  cash. Apr.  20.    Paid  janitor's  wages  to  date  from  Apr.  1,  $20. Apr.  30. 

Paid  gas  bill  for  the  month,  $7.10. 

Apr.  30.   The  unexpired  rent  for  2  months  is  valued  at  $  100,  and  the  unexpired 

rent  for  use  of  office  is  worth  $66.67. Apr.  30.   I  am  owing  Jesse  Curtiss  for  services 

as  clerk  to  date,  $  20. Apr.  30.    I  am  owing  janitor  for  services  rendered  from  April  20 

to  date,  $  10. 

Required,  the  net  cost  of  expenses  for  the  month. 

3.  Transactions    (Expense    and   Furniture   and   Fixtures).  —  May   1.   Paid  James 

Barnes  cash   for  putting   in  counters  and   shelving,   $630. May  1.   Paid   PMward 

Forster  cash  for  three  months' rent  in  advance,  $450. May  3.    Bought  of  Boutelle 

Brothers,  on  credit,  office   desk   and   chair,  $  175. May  4.    Paid  cash   for  postage, 

$7.50. May  5.   Paid  the   Times   Publishing   Co.  cash  for  advertising,  $62.50. 

May  6.    f*aid  Keyser  &  Co.  cash   for  papering  office,  $37.50. May  8.    Bought  of 

M.  D.  Rowley,  on  my  note   at  90   days,  a  burglar-proof  safe,  $175. May  9.   Paid 

George  Sherer  cash  for  painting  counters  and  shelving,  $20. May  10.    Paid  for  clerk 

hire  in  cash,  $50. May  11.    Received  cash  for  rent  of  one  half  of  store  for  3  months 

from  May  1,  in  advance,  from  J.  L.  Dobbin,  $300. May  12.    Paid  Phenix  Insurance 

Co.  cash  for  insurance  on  stock  of  goods,  furniture,  and  fixtures,  for  1  year,  at  2  %  on 
face  of  policy  of  $15,000,  policy  dated  May  1,  $?.---- May  13.   Paid  .Tames  Barnes 

cash  for  plate  glass  put  in  place  of  broken  one,  $87.50. INIay  15.    Allowed  John  A. 

Schlener  &  Co.'s  bill  for  blank  books  and  stationery  ainountihg  to  $54.70,  on  account. 

May  20.    Paid  cash  for  clerk  hire,  $50. May  30.    Paid  gas  bill  for  the  month, 

$18.75. 

May  31.  There  is  due  for  services  rendered  by  clerks  and  not  paid,  $  150 ;  1^  tons  of 
coal  have  been  used  during  the  month,  at  $  8  per  ton,  $  ?  ;  the  furniture  and  fixtures  are 
worth  90%  of  the  cost,  $  ?  ;  the  insurance  is  valued  at  ||  of  its  cost,  $  ?  ;  the  value  of 
the  unexpired  rent  of  store  is  |  of  the  cost,  $  ?  ;  and  the  unexpired  rent  of  the  half  store 
relet  is  worth  |  of  the  amount  received,  $  ?  . 

Required,  the  net  cost  of  expenses,  and  the  loss  on  furniture  and  fixtures. 


44  ACCOUNTS 

PROPRIETARY    ACCOUNTS 

Proprietary  Accounts  are  those  which  are  kept  for  the  purpose  of 
ascertaining  the  relation  which  the  owner,  or  owners,  of  a  business 
sustain  to  it,  by  exhibiting  investments  and  withdrawals. 

Sole  Proprietor  Account 

A  Sole  Proprietor  of  a  business  is  one  who  is  an  exclusive  or  sole 
owner. 

PURPOSE  OF   KEEPING  A   SOLE   PROPRIETOR   ACCOUNT 

An  account  is  kept  with  a  sole  proprietor,  under  his  own  name,  or 
under  the  title  Stock,  for  the  purpose  of  showing  the  relation  which  he 
sustains  to  the  business  ;  that  is,  what  the  business  owes  him  or  what 
he  owes  the  business. 


METHOD   OF   KEEPING   A   SOLE   PROPRIETOR   ACCOUNT 

The  value  of  the  property  invested  in  the  business  by  the  proprietor 
at  its  commencement,  as  well  as  all  subsequent  investments,  is  entered 
on  the  Cr.  side  of  his  account.  The  debts  of  the  proprietor  assumed  by 
the  business  at  its  commencement,  and  all  sums  withdrawn  at  any  time, 
are  entered  on  the  Dr.  side  of  his  account.  At  regular  times  the  net 
gain  of  the  business  is  entered  on  the  Cr.  side  of  his  account,  or  the 
net  loss  is  entered  on  the  Dr.  side.  The  excess  of  the  Cr.  footings  will, 
at  such  regular  times,  show  the  net  capital  of  the  business,  that  is,  the 
proprietor's  net  investment ;  the  excess  of  the  Dr.  footings,  at  such 
regular  times,  will  show  the  net  insolvency  of  the  business. 

It  is  not  unusual  for  a  proprietor  to  have  two  accounts,  one  of  which, 
as  above,  will  show  his  investment,  and  the  other  his  temporary  dealings 
with  the  business.  The  latter  account  is  known  as  his  personal  or  private 
account. 

ILLUSTRATION   OF   KEEPING  A   SOLE  PROPRIETOR   ACCOUNT 

1.    Transactions.  —  Jan.  2,  19 — .     I   invested   in   my  business   $5000   in  cash. 

Jan.  2.    I  am  owing  Frank  Forbes  $250,  and  Charles  Kent  $75,  and  these  debts  are 

assumed  by  the  business. Mar.  1.     Made  an  additional  cash  investment  of  $2500. 

Apr.  16.    Withdrew  for  personal,  temporary  use,  cash,  $150. May  1.    Made  an 

additional   cash  investment  of   $8000. June  1.     Returned  the  amount  withdrawn 

Apr.   16,  $150. June  14.     Withdrew  for  personal   use,   Mdse.,   $75.80. July  2. 

Returned  in  cash  the  amount  withdrawn  June  14. July  2.    The  net  gain  in  the 

business  for  the  past  six  months  is  $917.80. 

Required,  my  present  relation  to  the  business  as  proprietor. 


SOLE  PROPRIETOR   ACCOUNT 

Form  of  Ledger  Record 

(Withdrawals)        o/fly.    <0.    cfv14.d&flV  (Investments) 


45 


Ck. 


2 

<^'bCLn^  <^av{)-&Q. 

260 

fCf- 

2 

(Eao^k 

6000 

// 

2 

^kavt&a-  /C&nt 

76 

moLi. 

/ 

/f 

2600 

July 

2 

Bal,  Net  Capital 

11092 

80 

mcuif 

/ 

V 

SOOO 

hh 

2 

^/r 

80 

/f^/7 

80 

//^/7 

80 

^uty 

2 

/  /0^2 

80 

Invested,  $11,417.80;  withdrew,  $325;  net  investment  or  capital,  $11,092.80. 


Dr. 

S^fb.  (D,  <^tud&9tt,  < 

S^tV'Stxy'ivdt 

Ch 

/6 

^ 

160 

76 

80 

/ 

2 

/60 
76 

80 

226 

80 

226 

80 

Withdrew,  $  225.80 ;  returned,  $225.80.     Account  balanced. 


2.   Transactions.  —  Feb.  1,  19 — .    Invested   in  business  this  day,  cash,  $2000. 

Feb.  1.   I  am  owing  Charles  Wales  on  my  note  $  1500,  which  is  assumed  by  the  business. 

Apr.  2.    Made  an  additional  cash  investment  of  $500. May  1.   The  net  loss  for 

the  past  three  months  is  $175.50. June  15.   Withdrew  for  personal  use,  cash,  $150. 

----July  2.   Made  an  additional  cash  investment  of  $250. Aug.  1.    The  net  loss  for 

the  past  three  months  is  $1143.75. 

Required,  my  present  relation  to  the  business  as  proprietor. 

Note.  —  The  investment  account  and  the  per.sonal  account  are  combined  in  the  following 
ledger  record. 

Dr.  (Withdrawals)        J tV.    (o.    ott/HcL^Tlt         (Investments)  Cr. 


/ 

Bitto,  S^CLi^aAt& 

/dOO 

/ 

(laoA 

2000 

may- 

/ 

£aa^ 

/76 

60 

Clji^'L. 

2 

// 

600 

fun& 

/6 

da^k 

160 

futy 

2 

ft 

260 

CL^tcf. 

/ 

//¥-d 

76 

Aug. 

1 

Balancey  Insolvency 

219 

25 

2(^^6^ 

26 

2^69 

26 

(ZlLCf. 

/ 

2/^ 

26 

Investments,  $2750;  withdrawals  and  losses,  $2969.25;  insolvency,  $219.25. 


46  ACCOUNTS 

Partnership  Accounts 

A  Partnership  is  an  association  of  two  or  more  persons  who  join 
together  their  money,  goods,  labor,  and  skill,  or  any  of  them,  in  a 
business,  with  an  understanding  that  there  shall  be  a  sharing  of  profit 
between  them. 

A  Partner  is  one  who  shares,  as  a  member  of  a  partnership,  in  the 
management,  or  in  the  gains  or  losses  of  a  business. 

PURPOSE   OF   KEEPING   PARTNERS'    ACCOUNTS 

When  two  or  more  persons  are  united  in  the  ownership  of  the  same 
business  as  a  firm  or  partnership,  their  respective  interests  are  recorded 
under  their  own  individual  names.  These  accounts  with  the  individual 
partners  are  kept  for  the  purpose  of  showing  the  individual  relation  of 
each  partner  to  the  business. 

METHOD  0>N^  KEEPING  PARTNERS'   ACCOUNTS 

The  value  of  the  property  invested  by  each  partner  is  entered  on  the 
Cr.  side  of  his  account,  ^he  individual  debts  of  each  partner  which  are 
assumed  by  the  business,  and  all  sums  withdrawn  by  each,  are  entered  on 
the  Dr.  side  of  his  account.  Each  partner's  share  of  the  net  gain  is 
entered  on  the  Cr.  side  of  his  account,  or  his  share  of  the  net  loss  is 
entered  on  the  Dr.  side  of  his  account.  After  the  net  gains  have  been 
credited  or  the  net  losses  debited,  the  excess  of  the  Cr.  footings  of  each 
partner's  account  will  show  his  net  interest  in  the  business,  or  the  excess 
of  the  Dr.  footings  will  show  his  share  of  the  firm's  insolvency. 

Each  partner  may  have  two  accounts  —  one,  an  investment  or  perma- 
nent account,  and  the  other  a  temporary  or  personal  account. 

In  the  absence  of  any  contract  to  the  contrary,  the  net  loss  or  the  net 
gain  is  divided  equally  between  the  partners. 

ILLUSTRATION   OF   KEEPING  PARTNERS'   ACCOUNTS 

Transactions.  —  Apr.  2.  W.  W.  Folwell  and  D.  L.  Kiehle  are  partners.  Folwell 
invests  cash,  $  4500 ;  Kiehle  invests  Mdse.,  %  4000.  The  firm  assumes  an  account  against 
Folwell,  in  favor  of  E.  A.  Sheldon,  for  $  250 ;  and  a  note  signed  by  Kiehle,  in  favor  of 

C.  C.  Curtiss,  for  $300. Apr.  20.   Paid  a  claim  against  Folwell  for  $250,  not  assumed 

Apr.  2. Apr.  25. '  Paid  a  claim  against  Kiehle  for  $200,  not  assumed  Apr.  2. May  1. 

Folwell  draws  out  for  personal  use,  cash,  $100. May  10.    Kiehle  withdraws  for 

personal  use,  $75,  cash. May  15.   Folwell   invests  $1500,  cash. May  21.   Kiehle 

invests  store  and  fixtures,  valued  at  $5000. June  11.    Folwell  draws  out  cash  for 

personal  use,  $125. June  15.    Kiehle  draws  out  for  personal  use,  Mdse.,  $150. 

June  30.   The  firm  owes  Folwell  3  months'  salary,  at  $200,  and  Kiehle  3  months'  salary, 

lat  $200. July  2.   The  net  gain  of  the  business  amounts  to  $1250.    Folwell's  share 

is  I,  and  Kiehle's  share  is  |,  according  to  contract. 

Required,  the  relation  of  each  partner  to  the  business. 


Dr. 


PARTNERS'   ACCOUNTS 

Form  of  Ledger  Record 

lA}-.    W^.    o/'Ol/W-ctt    (Partner  Account) 


47 


Cb. 


ft 

July 

2 

20 

2 

€.  CC.  ^k&CcLyyi 
Bal,  Net  Interest 

260 

260 

5500 

2 
16 

// 

^^600 

/600 

6000 

00 

6000 

00 

\futj 

2 

6600 

Dr. 


Invested,  $(5000;  withdrew,  $500;  net  interest  in  firm,  $5500. 
^.    <L.    fCtbhJCb    (Partner  Account) 


Cr. 


July 

2 

26 

2 

8UU  S'aif^{^t& 

^a^k 

Bah,  Net  Interest 

SOO 

200 

8500 

TnoAf 

futy 

2 
20 

2 

^000 
6000 

CfOOO 

00 

^000 

00 

8600 

Dr. 


Invested,  $9000;  withdrew,  $500;  net  interest  in  firm,  $8500. 


H>.  W.  Sotwdt,  S>thQjynAt 


Cr. 


7na.y 
June, 
July 

/ 

// 

2 

^OUQ.k 
// 

Balance 

/OO 
126 
875 

\/9- 

SO 
2 

^aL,S'yn..@f200 

600 
600 

//OO 

00 

//OO 

00 

\fa4.iAf 

2 

876 

Total  Cr.,  $1100;  total  Dr.,  $225;  firm  owes  Folwell,  $875. 


Dr. 

^.  L.  f(ptktb,  S^t'i^onat 

Cf 

L. 

fun& 
July 

/O 

/6 

2 

£aa.k 
Balance 

76 

/60 

1125 

/^- 

SO 
2 

M.,S^.@f200 

600 
760 

/S60 

00 

/S60 

00 

\futy 

2 

//26 

Total  Cr.,  $1350;  total  Dr.,  $225;  firm  owes  Kielile,  $  1125. 


48  ACCOUNTS 


EXAMPLES   FOR   PRACTICE   IN   KEEPING  SOLE   PROPRIETOR   ACCOUNT 

1.  Transactions.  —  Aug,  1.  The  resources  of  my  business  are:  cash  on  hand, 
^3975.50;  notes  on  hand,  ^  1795.75 ;  Mdse.  on  hand,  per  inventory,  ^7960;  store  and 
fixtures,  valued  at  ^0500;  amounts  due  me  on  personal  accounts,  ^2750.30.  The  lia- 
bilities of  the  business  are:   amounts  due  others  on  personal  accounts,  $1890.50;  notes 

and  acceptances  outstanding,  ^  1375. Dec.  31.   I  have  withdrav^^n  for  personal  use  since 

Aug.  1,  $1475;  goods  from  store  for  family  use,  $560.75. Dec.  31.    The  net  loss  of 

the  business  from  Aug.  1  to  date  has  been  $496.50. 

Required,  my  present  relation  to  the  business. 

2.  Transactions.  —  Jan.  2.  The  resources  of  my  business  are  :  cash  on  hand,  $  175.50 ; 
funds  on  deposit  in  bank,  $3796.45;  negotiable  paper  on  hand,  $2750;  Mdse.  on  hand, 
as  per  inventory,  $12,465.75;  amount  due  me  on  personal  accounts,  $1937.50.  The  lia- 
bilities of  my  business  are  :   amounts  due  others  on  personal  accounts,  $  675  ;  notes  and 

acceptances  outstanding,  $3750. Mar.  1.   Added  $12,500    cash    to  my  investment. 

Apr.  4.  Drew  out  cash  for  personal  use,  $276.40. May  1.  Added  to  my  invest- 
ment, negotiable  paper,  $1500. June  30.   Drew  out  cash  for  personal  use,  $115. 

June  30.   The  net  gain  for  the^ast  six  months  amounts  to  $1795.60. 

Required,  my  present  investirient. 

EXAMPLES  FOR   PRACTICE  IN  KEEPING  PARTNERS'  ACCOUNTS 

1.  Transactions.  —  C.  C.  Curtiss  and  J.  L.  Hodgmire  are  partners.  Apr.  2.  Curtiss 
invests  cash,  $10,000;  Mdse.,  valued  at  $15,000.  Hodgmire  invests  cash,  $8000;  store 
and  fixtures,  valued  at  $9000.  Curtiss  owes  H.  G.  Hicks,  on  account,  $3000,  which  debt 
the  firm  assumes.  Hodgmire  owes  D.  C.  Bell,  on  note  at  90  days,  $500,  which  the  firm 
assumes. July  2.  Curtiss  makes  an  additional  investment  of  personal  accounts,  aggre- 
gating $2500. Oct.  1.  Hodgmire  adds  to  his  investment,  in  promissory  notes  due  him, 

$1800. Dec.  1.   The  firm  pays  S.  C.  Gale's  draft  on  Curtiss  for  $575,  not  assumed 

Apr.  2. Jan.  2.   The  firm  pays  a  note  signed  by  Hodgmire,  favor  W.  G.  Smith,  for 

$250,  which  was  not  assumed  Apr.  2. Jan.  2.   The  gains  to  date  have  been  $5750. 

Required,  the  relation  of  each  of  the  partners  to  the  business. 

2.  Transactions.  —  May  1,  19 — .  W.  C.  Smith  and  A.  B.  Todd  have  entered  into 
copartnership.  Smith  contributes  cash,  $7425.83;  store  and  fixtures,  $12,500;  personal 
accounts  due  him,  $6528.87;  bills  receivable  due  him,  $3427.96.  Todd  contributes  per- 
sonal accounts  due  him,  $5427.47 ;  Mdse.  as  per  inventory,  $15,728.75 ;  written  promises 
due  him,  $748.25.  Smith's  liabilities  assumed  by  the  firm  are:  amounts  due  others  on 
personal  accounts,  $1400 ;  on  notes,  $249.78.     Todd's  liabilities  assumed  by  the  firm  are  : 

amounts  due  others  on  personal  accounts,  $1500;  on  notes,  $2575. July  17.   Paid 

John  I.  Gordon's  sight  draft  on  A.  B.  Todd  favor  of  Charles  J.  Barnes  for  $120,  debt 
not  assumed  May  1. Aug.  15.  Paid  Hiram  H.  Gail's  draft,  drawn  payable  on  de- 
mand, for  $95,  on  A.  B.  Todd  in  favor  of  W.  C.  Smith,  debt  not  assumed  May  1. 

Sep.  15.    Collected  A.  B.  Todd's  personal  claim  of  $215  against  Charles  E.  Cady,  which 

sum  A.  B.  Todd  allows  to  remain  in  the  firm  as  an  additional  investment. Dec.  31. 

The  firm  has  paid  cash  for  personal  accounts  against  Smith  which  were  not  assumed, 
$722.90.---- Dec.  31,  19—.   The  net  gain  to  date  amounts  to  $9476.50. 

Required,  the  net  interest  of  each  partner. 


COMPLETE  BUSINESS   RECORD 


49 


COMPLETE    BUSINESS   RECORD 

In  the  preceding  illustrations  each  account  has  been  considered  sepa- 
rately, and  without  reference  to  the  relation  which  it  sustains  to  other 
accounts,  the  purpose  being  to  teach  the  individual  characteristics  and 
use  of  the  separate  accounts  presented. 

In  the  transactions  given  for  illustrations,  only  one  element  of  a  trans- 
action has  been  considered.  We  now  come  to  the  consideration  of  the 
two  elements  which  are  found  in  every  business  transaction ;  viz.  the  debit 
element  and  the  credit  element. 

A  complete  record  of  any  business  transaction  must  show  both  of  the 
elements  named,  and  will  require  entries  in  two  or  more  accounts. 


COMPLETE   BUSINESS   RECORD   ILLUSTRATED 

1.     One  Debit  Entry  and   One   Credit  Entry 

1.   Transaction.  —  Jan.    2,    19 — .    Bought    of    Eld  ward    Forster,    on    credit,    Mdse. 
imounting  to  $275.25. 


Dr. 

TlUl^fldTlcLUt 

Or 

2  ScLw-ouvcl  S^avQZ&v 

273 

26 

Dr.                              Sclw-duL  SavQyttv 

Or. 

2 

rncUe.. 

275  25 

i 

A  complete  record  of  this  transaction  requires  an  entry  on  the  Dr. 
nde  of  Mdse.  account,  to  show  the  cost  of  the  Mdse.  purchased,  and 
also  an  entry  on  the  Cr.  side  of  Edward  Forster's  account,  to  show  the 
amount  which  is  due  him. 

In  this  record  there  are  two  facts  recorded,  requiring  one  Dr.  entry 
and  one  Cr.  entry;  and  there  are  two  accounts  involved  in  the  com- 
plete record. 

2.   Transaction.  —  Feb.  1,  19—.    Sold  A.  Sherman,  on  credit,  Mdse.  amounting  to 

1987.50. 


Dr. 


l?lth(^ka/}^(ii/^ 


Cr. 


CC.  of/t&vyyLai^ 


^8/  5i 


50 


Dr. 


ACCOUNTS 


Cr. 


/  mcU&. 

98/60 

A  complete  record  of  this  transaction,  which  involves  two  accounts, 
requires  an  entry  on  the  Cr.  side  of  Mdse.  account  to  show  the  proceeds 
from  the  sale  of  Mdse.,  and  also  requires  an  entry  on  the  Dr.  side  of 
A.  Sherman's  account  to  show  his  indebtedness. 

2.    Two  Debit  Entries  and  One  Credit  Entry 

3.  Transaction.  —  Mar.  1, 19 — .  Sold  Charles  Hale  Mdse.  amounting  to  14276.50,  and 
received  cash,  f  2276.50,  in  part  payment,  and  his  note  at  90  days  for  the  balance. 


Dr. 


^d^'fu 


Cr. 


/ 

mcUe.. 

2276 

■50 

Dr. 

8(ll9^  f(mbLvci{}lt 

Cr 

19- 

/ 

mcUe.. 

2000 

00 

Dr. 

7l\b\^h.ciruivdLt 

Cr 

• 

/ 

^'wn.cLvl&Qy 

^276 

60 

A  complete  record  of  this  transaction,  which  involves  three  accounts, 
requires  an  entry  on  the  Dr.  side  of  Cash  account,  to  show  the  receipt 
of  cash,  82276.50;  an  entry  on  the  Dr.  side  of  Bills  Receivable  account, 
to  show  the  note  received,  $2000;  and  an  entry  on  the  Cr.  side  of 
Mdse.  account,  to  show  the  proceeds  from  the  sale.  It  will  be  seen 
that  the  sum  of  the  Dr.  items  equals  the  Cr.  item. 


3.    Oyie  Debit  Entry  and  Two  Credit  Entries 

4.   Transaction.  —  Apr.  2,  19 — .   Bought  of  James  Dunn,  Mdse.,  $7460.50;   gave  in 
part  payment  cash,  $3500,  and  my  note  at  3  months  for  the  balance,  $3960.50. 


COMPLETE   BUSINESS   RECORD 


51 


Db. 


THtviJtaAvcLl^b 


Cr. 


2 

'zfzvndvv&a^ 

7^60 

60 

Dk. 

&mk 

Cr. 

fCf— 

2 

mcU&. 

S600 

00 

Dr. 

fSltU.  S^d^Mt 

Cb. 

19- 

^?yicUe>. 

3^60 

60 

A  complete  record  of  this  transaction,  which  involves  three  accounts, 
requires  an  entry  on  the  Dr.  side  of  Mdse.  account,  to  show  the  cost 
of  the  Mdse.  purchased,  i  7460. 50;  an  entry  on  the  Cr.  side  of  the  Cash 
account,  $3500,  to  show  the  payment  of  cash;  and  an  entry  on  the  Cr. 
side  of  Bills  Payable  account,  to  show  the  issue  of  our  note,  $3960.50. 
It  will  be  seen  that  the  sum  of  the  Cr.  items  equals  the  debit  item. 


4.    Two  Debit  Entries  and  Two  Credit  Entries 

5.  Transaction.  —  May  1,  19 — .  Bought  of  William  Windom,  dry  goods,  11750.25; 
groceries,  ^f  2300.50 ;  gave  in  payment  my  draft  on  John  Rowe  for  |2000,  and  my  note  at 
30  days  for  the  balance,  $2050.75. 


I 


Dr. 

^mf 

^oodf^ 

Cr 

■ 

/ 

'-ficyiclv'i&Qy 

1760 

26 

Dr. 

Sux^thVt^                                                      Cr. 

L 

/ 

^iirucLii&Q, 

2300 

60 

1 

\    Dr. 

JofurU  f^OU't                                                    Cb. 

k — 

. 

7^4- 

/ 

ofund'LV&a' 

2000 

00 

,52 


ACCOUNTIS 


Dr. 


'Lt'oi  S^dyal^tb 


Cr. 


may. 

/ 

c/icKclvvea^ 

2050  76 

A  complete  record  of  this  transaction,  which  involves  four  accounts, 
requires  an  entry  on  the  Dr.  side  of  Dry  Goods  account,  to  show  the 
cost  of  dry  goods,  $1750.25;  an  entry  on  the  Dr.  side  of  Groceries 
account,  to  show  the  cost  of  groceries,  $2300.50;  an  entry  on  the  Cr. 
side  of  John  Rowe's  account  for  the  amount  of  my  draft  on  him,  82000 ; 
and  an  entry  on  the  Cr.  side  of  Bills  Payable  account,  to  show  the 
issue  of  my  note  for  the  balance,  12050.75.  It  will  be  seen  that  the  sum 
of  the  Dr.  items  is  equal  to  the  sum  of  the  Cr.  items. 


5.    Several  Deh^t  Entries  and  Several  Credit  Entries 

6.  Transaction.— June  i,,  19—.  Sold  O.  M.  Metcalf,  store  and  fixtures,  for  $8500; 
Mdse.,  per  inventory,  $7750;  good  will,  $2500;  received  in  payment,  cash,  $9500;  note, 
his  favor,  made  by  Thomas  Cochran,  dated  May  1,  19 — ,  at  60  days,  for  $6000,  with 
interest  at  6%;  and  his  note  at  90  days  for  the  balance,  $3220.  Interest  accrued  to  date 
on  Thomas  Cochran's  note,  $30. 


Dr. 


(^ao^k. 


Cr. 


/ 

cfiAAVcCvv&a^ 

^600 

00 

Dr. 

Iditto.  J^oQ.tVUOi{}-tb 

Cr. 

/ 

oiu'yicObC&Qy 

^2^0 

00 

Dr. 

Jntbiz^t 

Cr. 

/ 

^^oncObve^ 

JO 

00 

Dr. 

ofto-u.  and  SCxtiA.'u&a^ 

Cr. 

oflCncUyV&Qy       ■ 

8600 

00 

PRINCIPLES    OF   DOUBLE-ENTRY  BOOKKEEPING  53 


Dr. 

THti&fbci'yuLm.b 

Cr 

/  oftcncl\.i.&ay 

7760  00 

^aacC  Uydt 

Cr. 

ICf— 

/  QjwiidA'i^e^ 

2600 

00 

A  complete  record  of  this  transaction,  which  involves  six  accounts,  re- 
quires an  entry  on  the  Dr.  side  of  cash  account,  to  show  the  amount  of 
money  received,  ^9500;  an  entry  on  the  Dr.  side  of  Bills  Receivable  ac- 
count, to  show  the  amount  of  notes  received,  %  9220 ;  an  entry  on  the  Dr. 
side  of  Interest  account,  to  show  the  amount  accrued,  f  30  ;  an  entry  on  the 
Cr.  side  of  Store  and  Fixtures  account,  to  show  the  proceeds  of  sale,  18500  ; 
an  entry  on  the  Cr.  side  of  Mdse.  account,  to  show  the  proceeds  from  the 
sale  of  Mdse.,  -^7750 ;  and  an  entry  on  the  Cr.  side  of  Good  Will  account, 
to  show  the  proceeds  of  the  sale  of  the  business,  f  2500.  It  will  be  seen 
that  the  sum  of  all  the  Dr.  items  equals  the  sum  of  all  the  Cr.  items. 


PRINCIPLES   OF   DOUBLE-ENTRY   BOOKKEEPING 

The    foregoing    illustrations    elucidate    the    following    principles    of 
accounting  : 

Fir%t 

The  complete  record  of  any  business  transaction  requires  the  considera- 
tion of  all  its  relations  to  different  accounts. 

Second 
The  record  of  a  business  transaction  will  not  be  complete  unless  one 
account  is  debited  and  one  account  credited,  or  two  or  more  accounts  are 
debited  and  one  account  credited,  or  one  account  is  debited  and  two  or 
more  accounts  credited,  or  two  or  more  accounts  are  debited  and  two  or 
more  accounts  credited. 

TJiird 

The  sum  of  all  the  Dr.  entries  of  each  transaction  must  equal  the 
sum  of  all  the  Cr.  entries. 

Fourth 

The  sum  of  all  the  Dr.  entries  of  all  the  transactions  recorded  must 
equal  the  sum  of  all  the  Cr.  entries  of  all  the  transactions. 

In  Short 
There  must  always  be  an  equality  of  debits  and  credits. 


54 


ACCOUNTS 
JOURNALIZING 


Journalizing  is  the  mental  process  of  analyzing  business  transactions 
and  determining  the  debits  and  credits  thereof. 

The  transactions  for  the  following  illustration  are  taken  from  Ex.  1, 
page  12. 

Form  of  Journal  Entry 


Postmark 
Column 


Dr.  Accounts 


(^a.-1/k 


0?c^&'yia'& 


(^(mJv 


laoyfi 


ISM  V  ?nou{y-eAf 


^a^h^ 


Sx/^&n^&  (cyu  <^&&cC) 


^a^k 


fCie^kU  V  €0. 


(S^cioA 


€c 


'?C%eA1^Q^ 


Equality 


Cr.  Accounts 


c^4.  <o.   cftyiocL&nt 


S 


6 


6 


6 


6 


6  — 


6 


of  Footings 


Dr.  Amts. 


^76 


/¥- 


¥-¥■ 


/^7 


fSJ 


3/6 


22 


^7 


/6 


60 


/S87 


SO 


76 


26 


^^ 


^6 


60 


^8 


60 
T7 


Cr.  Amts. 


^76 


/¥- 


^^ 


f¥-7 


/S7 


876 


^7 


/6 


60 


7 


/387 


80 


76 


26 


Cflf 


^6 


¥■8 


60_ 
T7 


r 


JOURNALIZING 


65 


The  examples  for  practice  in  keeping  the  various  accounts,  found  on 
the  preceding  pages,  will  furnish  abundant  material  for  practice  in  jour- 
nalizing. 

The  business  transactions  for  the  following  illustration  of  journalizing 
are  taken  from  Ex.  3,  page  12. 


Form  of  Journal  Entry 


Mawibv-lttt,  fdO^Aidvy  15,  /f. 


fostinark 
Column 


Dr.  Accounts 


IcmA 


€x.jii 


fii&n^& 


laa^/v 


(JnteAy&oX/ 


jCo-QyQ/   ^    ^OAAV 


%.  €.  oftiicLsmt 


J.  lA)-.  j.aknoxyyv 


l1^£A.^kayncCui^& 


Cr.  Account!> 


/6 i 


/6 


/7 — 


18' 


18 


^0- 


E  quality 


^2- 


^XA.Qyk 


of  Footings 


Dr.  Amts. 


//86 


/78 


/3 


//SO 


600 

8 


2 


76 


/6S 


876 


Cf6 


^337 


33 


60 


76 


76 


60 


// 


9^ 


Cr.  Amts. 


//86 


/76 
3 


/3 


/760 


608 


2 


76 


/63 


37^ 


96 
/ 


^337 


33 


60 


76 


'6 


50 


// 


5(5  ACCOUNTS 

BOOKS    OF   RECORD    USED    IN    BUSINESS 

The  books  in  which  the  records  of  a  business  are  kept  depend  largely 
upon  the  nature  and  extent  of  the  business  which  they  represent.  Tliey 
are  usually  classified  as  Principal  Books  and  Auxiliary  Books. 

Principal  Books  are  the  day  book,  the  ledger,  and  those  books  from 
which  the  entries  are  transferred  or  posted  to  the  ledger. 

Auxiliary  Books  are  those  which  are  used  as  aids  to  the  principal  books. 

Books  of  Original  Entry  are  those  in  which  transactions  are  first 
recorded.     There  should  never  be  any  erasures  in  them. 

Principal  Books 

The  Ledger,  or  Book  of  Accounts,  is  the  book  in  which  all  the  debits 
and  all  the  credits  of  all  the  various  transactions  of  a  business  are  clas- 
sified under  proper  titles  qr  headings  in  order  to  show  special  and  general 
results  of  business.  ^ 

The  process  of  transfe^'ring  the  debits  and  credits  from  the  journal  and 
from  other  books  kept  in  journal  form,  to  their  proper  places  in  the  ledger, 
is  called  Posting. 

The  Day  Book  is  a  book  of  original  entry,  in  which  the  transactions  of 
a  business  are  recorded  in  narrative  form  in  the  order  and  at  the  time 
of  their  occurrence.  It  is  sometimes  called  the  Blotter.  Formerly  all  the 
transactions  of  a  business  were  first  entered  in  this  book,  but  for  some 
years  past,  especially  in  the  more  extensive  businesses,  the  transactions 
are  instead  classified  and  entered  in  other  books  specially  arranged  for 
the  purpose,  such  as  the  sales  book,  cash  book,  invoice  book,  and  others. 

The  simple  form  of  the  day  book  contains  appropriate  spaces  and 
columns  for  recording  the  date  of  the  transaction,  the  transaction  itself, 
and  the  amount  involved  in  the  transaction. 

Great  care  should  be  taken  to  make  the  statements  entered  in  this 
book  clear,  concise,  and  yet  so  complete  that  there  can  be  no  doubt  con- 
cerning the  facts  of  the  transactions  recorded. 

The  pupil,  in  writing  the  day-book  exercises,  should  be  careful  to  pre- 
serve the  wording  and  the  arrangement  of  the  entries.  The  horizontal 
ruling  which  separates  the  transactions  may  be  deferred  until  a  page  is 
written. 

The  Journal  is  the  book  in  which  the  debits  and  credits  of  business 
transactions  are  classified  preparatory  to  transferring  to  the  ledger. 

The  journal  may  be  used  as  a  separate  book,  coming  between  the  day 
book  and  the  ledger,  but  it  is  more  generally  used  in  combination  Avith 
the  day  book  as  a  book  of  original  entry.  When  so  used  it  is  called  the 
Journal-Daybook. 


BOOKS    OF  RECORD  67 

Auxiliary  Books 

The  Purchase  Book  is  the  book  in  which  are  recorded  the  purchases  of 
merchtindise.  It  may  be  so  kept  as  to  combine  all  the  features  of  the  day 
book,  journal,  and  purchase  book,  so  far  as  the  purchases  are  involved. 
When  so  used  it  is  called  the  Purchase  Journal,  or  Invoice  Journal,  and 
is  a  principal  book. 

Instead  of  copying  invoices,  they  may  be  arranged  and  pasted  in  a 
Scrap  Invoice  Book,  and  the  total  amount  of  each  invoice  may  be  extended 
into  a  column  prepared  for  the  purpose  in  the  margin. 

The  Sales  Book  is  the  book  in  which  are  recorded  the  sales  of  mer- 
chandise. It  may  be  so  kept  as  to  combine  all  the  features  of  the  day 
book,  journal,  and  sales  book,  so  far  as  thQ  sales  are  concerned,  and  when 
so  used  it  is  called  the  Sales  Journal  and  is  a  principal  book. 

Separate  sales  books  for  city  and  out-of-town  customers  are  kept  in 
many  business  houses. 

The  Cash  Book  is  the  book  in  which  a  special  record  is  kept  of  the 
receipts  and  disbursements  of  money.  It  may  be  so  arranged  and  kept 
as  to  combine  all  the  features  of  the  day  book,  journal,  and  cash  book,  so 
far  as  cash  items  are  involved,  and  when  so  kept  it  is  called  the  Cash 
Journal  and  is  a  principal  book. 

All  receipts  of  money  are  entered  on  the  Dr.  side  of  the  cash  book. 
The  date  of  receiving  the  money,  the  account  for  which  the  money  is 
received,  and  the  amount  received  should  be  clearly  stated.  All  pay- 
ments of  money  are  entered  on  the  Cr.  side  of  the  cash  book.  The 
date  of  paying  the  money,  the  account  for  which  the  money  is  paid,  and 
the  amount  paid  should  be  distinctly  recorded. 

The  Receipt  Book  is  a  book  of  printed  blank  receipts,  which  are  filled 
and  signed  when  money  is  received,  and  then  delivered  to  the  person 
paying  the  money.  It  is  made  with  one  or  more  receipts  on  a  page,  per- 
forated so  that  they  may  be  readily  detached,  and  with  a  margin,  or  stub, 
upon  which  to  make  a  memorandum  of  the  transaction.  This  memoran- 
dum should  be  made  before  the  receipt  is  detached  and  delivered. 

The  Check  Book  is  a  book  of  printed  blank  checks,  which  are  filled  by 
the  drawer  of  the  check  when  lie  wishes  to  pay  a  creditor  or  to  draw 
money  from  the  bank  for  his  own  use.  It  is  made  with  one  or  more 
checks  on  a  page,  usually  perforated  so  that  they  may  be  easily  detached. 
The  inner  margin,  or  stub,  is  arranged  for  recording  the  date,  the  payee, 
the  number  of  the  check,  and  the  amount  for  which  it  is  drawn. 

An  account  with  the  bank  is  usually  kept  on  the  back  of  the  stub, 
which  is  ruled  for  that  purpose. 

The  Bank  Pass  Book  is  a  book  which  is  taken  to  the  bank  with  the 
funds  inteuded  for  deposit,  and  in  which  the  teller  of  the  bank  makes  a 


o8  BOOKS   OF  RECORD 

record  of  each  deposit  when  made.  This  record  is  the  receipt  for  the 
deposit. 

The  book  is  left  with  the  bank,  usually  at  the  end  of  the  month,  to  be 
written  up  and  balanced,  after  which  it  is  returned  to  the  depositor, 
together  with  the  checks  which  the  bank  has  paid  and  canceled.  These 
returned  checks  serve  as  receipts  from  the  persons  to  whom  they  were 
issued. 

The  Note  Book  is  a  book  of  printed  blank  notes,  which  are  filled  in  and 
signed  by  the  maker.  The  book  is  made  with  one  or  more  notes  on  a 
page,  which  is  usually  perforated  so  that  the  notes  may  be  readily  de- 
tached. The  margin,  or  stub,  is  arranged  for  recording  the  date  of  issue, 
time  to  run,  the  name  of  the  payee,  the  principal,  and  the  place  where 
payable. 

The  record  of  the  issue  of  the  note  should  alwaj^s  be  made  on  the 
margin  before  the  note  is  detached  and  delivered  to  the  payee. 

The  Draft  Book  is  a  %pok  of  printed  blank  drafts,  which  are  filled  in 
and  signed  by  the  drawerr  The  book  is  made  with  one  or  more  drafts  on 
a  page,  which  is  usuall}i^  perforated  for  detaching.  The  margin,  or  stub, 
is  arranged  for  a  record  of  the  date  of  drawing,  the  time  to  run,  the  name 
of  the  payee,  the  name  of  the  drawee,  and  the  amount. 

The  record  of  the  drawing  of  a  draft  should  be  made  on  the  margin, 
or  stub,  before  detaching  and  delivering. 

The  Bill  Book  is  the  book  in  which  a  special  record  is  made  of  the 
issuing  and  the  redeeming  of  our  written  promises  and  the  receipt  and  the 
disposition  of  others'  written  promises. 

The  simple  form  of  the  bill  book  contains  appropriate  columns  and 
spaces  for  recording  the  date,  time  to  run,  maturity,  and  principal  of  each 
negotiable  paper  issued  and  received,  together  with  the  names  of  the  parties 
thereto,  and  the  final  disposition  thereof. 

The  Index  Book  is  a  book  in  which  are  arranged  the  names  of  the 
accounts  in  the  ledger,  in  alphabetical  order,  to  afford  ready  reference  to 
any  account  desired.  An  account  should  be  indexed  as  soon  as  the  title 
is  written  in  the  ledger,  and  whenever  any  account  is  changed  from  one 
page  to  another.  The  index  book  is  sometimes  bound  in  the  ledger,  but 
where  there  are  many  accounts  a  separate  book  should  be  used. 

The  Trial  Balance  Book  is  a  book  in  which  the  regular  periodical  trial 
balances  are  made  and  preserved  for  future  reference. 

The  Order  Book  is  used  to  record  orders  received  by  mail  or  taken 
direct  from  customers. 

The  Letter  Book  is  a  book  in  which  all  important  outgoing  correspond- 
ence is  copied  by  the  letter  press. 

The  Stock  Record  Book  is  used  to  record  the  quantity  of  goods  bought 
and  sold,  so  as  to  show  the  quantity  on  hand. 


SECTION   TWO 

USES    OF   THE  DAY  BOOK,   JOURNAL,   AND  LEDGER,    WITH 
SOME  AUXILIARY  BOOKS   AND  BUSINESS   FORMS 

APPLICATION    OF  PRINCIPLES 

The  preceding  pages  have  been  devoted  to  the  consideration  of  the 
fundamental  principles  of  accounting.  The  work  in  this  section  is  for 
the  purpose  of  illustrating  and  teaching  the  opening,  conducting,  and 
closing  of  "  sets  "  of  double-entry  books,  using  the  simple  forms  of  the 
day  book,  journal,  and  ledger  as  principal  books,  and  the  cash  book, 
receipt  book,  and  check  book  as  auxiliary  books.  It  also  teaches  the 
making  of  business  forms,  such  as  bills  of  parcels  (itemized  bills,  or 
invoices),  receipts,  checks,  statements  of  finance  and  business. 

The  Memoranda  of  Transactions  are  to  be  used  in  the  place  of  the 
transactions  themselves,  and  are  limited  to  those  which  will  best  serve 
the  purposes  intended.  All  the  parties  to  the  transactions  are  supposed 
to  be  residents  of  "  Homeville,"  and  the  business  is  limited  to  that  which 
may  be  transacted  without  correspondence. 

Price  Lists.  — Six  different  price  lists  for  buying  and  selling  are  given, 
so  that  members  of  a  class  may  work  independently  while  following  the 
same  general  instructions. 

Practice  Ledger.  —  It  is  thought  advisable  to  use  the  practice  ledger  as 
a  preliminary  exercise,  for  the  first  two  sets,  in  order  to  get  a  general  out- 
line of  the  business  to  be  recorded. 

All  Calculations  and  Extensions  for  the  first  two  weeks  have  been  made 
in  full,  so  that  a  complete  reference  may  be  had  to  all  the  details  of  the 
various  transactions. 

Day  Book  and  Journal.  —  It  is  best  to  gain  first  a  thorough  knowledge 
of  the  forms  and  uses  of  the  day  book  and  the  journal,  as  separate  hooks, 
before  attempting  to  consider  them  in  their  combined  form. 

A  Great  Variety  of  transactions  are  here  presented  for  practice  in 
bookkeeping,  yet  no  pretense  is  made  of  giving  a  complete  exhibit  of  any 
kind  of  business.  The  purpose  is  to  help  the  student  to  become  an 
intelligent  accountant  rather  than  a  mere  routine  clerk. 

59 


60 


APPLICATION  OF  PRINCIPLES 


First  Set. — Th.  E.  Student,  Sole  Proprietor 

Characteristics.  —  Beginning  with  a  cash  capital;  buying  and  selling  flour,  corn, 
beef,  and  pork,  for  cash  and  on  credit;  realizing  a  gain  and  closing  with  an  increased 
capital. 

Books  Used.  — Practice  ledger  (for  preparatory  work),  day  book,  receipt  book,  cash 
book,  journal,  and  ledger. 

Business  Forms  Used.  —  Bills  of  parcels  (itemized  bills),  receipts,  inventories,  business 
statements,  financial  statements,  and  balance  sheets. 

Student  as  Proprietor.  —  Each  student  may  consider  himself  as  the  proprietor  of  the 
business  represented  in  the  memoranda  of  transactions,  will  use  his  own  name  as  such, 
and  keep  the  books. 

Titles  of  Accounts.  —  For  the  convenience  of  the  teacher  and  the  student,  and  for  the 
sake  of  economy  in  the  use  of  the  ledger  space,  the  number  of  lines  each  account  will 
require  is  given  below.  This  allowance  provides  for  all  current  entries,  closing  entries, 
and  two  additional  lines  for  the  separation  of  the  accounts :  Th.  E.  Student,  9 ;  Aaron 
Austin,  10;  Benjamin  Butler,  10;  Charles  H.  Curtiss,  6;  Cash,  25;  Expense,  10;  David 
Dodge,  11;  Flour,  22;  Corn,  15;  Mess  Beef,  12;  Edward  Everett,  7;  Prime  Pork,  11; 
Frederic  Ford,  7 ;  Loss  and  G^i^,  11 ;  Balance,  12. 

Place  of  Business.  —  The  jiaVne  of  village  or  city  and  the  state  where  the  student 
resides  may  be  substituted  for  "  Homeville." 

Price  Lists.  —  Each  student  will  substitute  the  prices  given  in  the  list  assigned  to 
him  for  the  prices  used  in  the  text,  and  continue  to  use  the  same  list  throughout  the  sets. 

Buying  Price  Lists 


Articles 

Per 

1 

2 

3 

4 

5 

6 

Flour,  Extra, 

bbl. 

5 

25 

5 

80 

5 

35 

5 

40 

5 

45 

5 

50 

"        Superfine, 

« 

5 

50 

5 

55 

S 

60 

5 

m 

5 

70 

5 

75 

"       Minnehaha, 

<( 

6 

85 

6 

90 

6 

95 

7 

7 

05 

7 

10 

Corn, 

bus. 

40 

42 

44 

46 

48 

50 

Mess  Beef, 

bbl. 

12 

25 

12 

30 

12 

35 

12 

40 

12 

45 

12 

50 

Prime  Pork, 

ii 

13 

50 

13 

55 

13 

60 

13 

65 

13 

70 

13 

75 

Selling  Price  Lists 


Articles 

Per 

1 

2 

3 

4 

5 

6 

Flour,  Extra, 

bbl. 

6 

20 

6 

25 

6 

30 

6 

35 

6 

40 

6 

45 

Superfine, 

(( 

6 

45 

6 

50 

6 

55 

6 

60 

6 

65 

6 

70 

"       Minnehaha, 

(< 

7 

80 

7 

85 

7 

90 

7 

95 

8 

8 

05 

Corn, 

bus. 

45 

47 

49 

51 

53 

55 

Mess  Beef, 

bbl. 

13 

65 

13 

70 

13 

75 

13 

80 

13 

85 

13 

90 

Prime  Pork, 

« 

14 

95 

15 

15 

09 

15 

10 

15 

15 

15 

20 

Assignments  of  Lists.  —  The  student,  having  been  assigned  one  of  the  foregoing  price 
lists  for  buying  and  selling,  should  make  a  copy  of  it  on  a  separate  piece,  of  paper  like  the 
following  illustration. 


FIRST  SET 


61 


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6 

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GENERAL   DIRECTIONS   FOR  WORKING  FIRST   SET 

First  Working.  —  1.  Make  out  all  the  bills  of  parcels  required  in  the  business  to 
Jan.  15,  according  to  forms  given  on  pages  66  and  67. 

2.  Write  all  the  receipts  to  be  given  and  taken,  the  outgoing  receipts  in  the  receipt 
book,  and  the  incoming  ones  on  blank  paper.     See  pages  68  and  69. 

3.  Fold  and  file  the  vouchers  (bills  and  receipts)  according  to  the  directions  of  the 
teacher. 

4.  Analyze  each  transaction  (decide  upon  the  Dr.  and  the  Cr.)  in  the  order  of  occur- 
rence to  Jan.  15,  using  the  practice  ledger  in  which  to  enter  the  results  obtained.  The 
names  of  the  accounts  and  the  number  of  linos  each  will  require  are  given  on  the  preced- 
ing page.     See  page  64. 

The  entries  in  the  practice  ledger  may  be  written  with  a  pencil,  which  should  be 
kept  well  sharpened  so  that  letters  and  figures  will  be  clear  and  distinct. 

5.  Take  a  trial  balance  of  the  practice  ledger.     See  page  64. 
B.   Prepare  an  inventory  of  unsold  property.     See  page  69. 

7.  Prepare  the  business  statement.     See  page  65. 

8.  Prepare  the  financial  statement.     See  page  65. 

Second  Working.  —  1.  Record  all  the  transactions  of  the  first  two  weeks  in  the  day 
book,  observing  carefully  all  instructions  regarding  the  arrangement  of  the  entries.  The 
writing  should  be  neat  and  legible,  entirely  free  from  unnecessary  display,  and  the 
figures  small,  distinct,  and  in  their  proper  places.     See  pages  70  and  71. 

2.  Rule  the  day  book  as  shown  on  pages  70  and  71.  (Red  ink  should  be  used  for 
all  rulings.) 

3.  Write  the  cash  book  for  the  first  two  weeks,  and  rule  it  as  shown  in  the  model 
on  pages  78  and  79. 

4.  Journalize  all  transactions,  checking  the  same  in  the  day  book  as  soon  as  each 
journal  entry  is  made.     See  pages  72  and  73. 

5.  Rule  the  journal  as  shown  in  the  model.     See  pages  72  and  73. 

6.  After  your  teacher  has  approved  your  journal,  post  each  journal  entry  to  the 
ledger  as  he  shall  direct  (see  pages  74  and  75),  post^  marking  in  the  journal  each  entry 
as  soon  as  it  is  posted. 

7.  Take  a  trial  balance.  Tf  the  trial  balance  shows  that  errors  have  been  made,  make 
a  careful  study  of  "  How  to  find  errors  in  posting,"  and  "  How  to  correct  errors  when 
found."     See  pages  80  and  81. 

8.  Close  the  ledger,  after  a  careful  study  of  "  Closing  the  ledger,  current  form,"  as 
found  on  pages  81,  82,  and  83. 


62  APPLICATION  OF  PRINCIPLES 

MEMORANDA   OF   TRANSACTIONS 

Homeville,  Tuesday,  Jan.  2,  19 — .  T  (Th.  E.  Student)  commenced  business  this  day, 
with  a  cash  capital  of  f  1500. 

Directions  for  Day  Book  Record.  —  The  first  word  of  each  day  book  entry  should  be  written 
close  to  the  marginal  line  at  the  left,  and  the  first  word  or  figure  of  each  subsequent  line  should  be 
indented  one  half  inch. 

In  a  day  book  the  right-hand  money  column  is  called  the  amount  column,  and  the  one  at  its 
left  is  called  the  item  column.  When  there  is  only  one  item,  it  is  placed  in  the  amount  column. 
See  pages  70  and  71. 

Directions  for  Journal  Entry.  —  An  examination  of  this  transaction  shows  that  two  accounts 
are  affected,  Cash  account  and  the  proprietor's  account.  Cash  account  is  Dr.  for  $1500,  because 
cash  is  received  into  the  business,  and  the  proprietor's  account  is  Cr.,  because  the  proprietor  made 
the  investment.    See  page  72. 

In  a  journal,  the  left-hand  money  column-  is  called  the  Dr.  column,  and  the  right-hand  money 
column  is  called  the  Cr.  column. 

Jan.  2.   Bought  of  Aaron  Austin,  on  credit,  20  bbls.  extra  flour,  at  $  ?  . 

Note.  —  In  the  day  book,  the  price  of  each  item  bought  or  sold  should  be  placed  close  to  the 
left  of  the  item  column.    See  pages  70  and  71. 

Note.  —  In  this  purchase.  Flour  account  is  Dr.  for  the  cost  of  the  flour,  and  Aaron  Austin  is  Cr. 
for  the  same  amount,  because  he  df^s  not  at  the  time  receive  payment.     See  Journal,  page  72. 

1 

Jan.  2.   Sold  Benjamin  Bntler,  on  credit,  6  bbls.  extra  flour,  at  f  ?  . 

Note.  —  In  this  sale,  Benjamin  Butler  is  Dr.,  because  he  does  not  pay  at  this  time,  and  Flour 
account  is  Cr.  for  the  proceeds  of  the  sale. 

Jan.  3.  Paid  E.  A.  Taylor  cash  for  3  tons  of  coal,  at  $6.50,  $19.50  (delivered 
Jan.  2). 

Note.  —  Expense  account  is  Dr.  for  the  outlay,  $19.50,  and  Cash  account  is  Cr.  for  the  money 
paid,  $19.50. 

Jan.  4.  Bought  of  W.  C.  Smith,  for  cash,  500  bus.  corn,  at  ?  ^ ;  30  bbls.  superfine 
flour,  at  $  ?  ;  total,  $  ?  . 

Note.  —  When  there  are  two  or  more  items  in  a  purchase  or  sale,  the  cost  of  each  is  placed  in 
the  item  column,  and  the  total  cost  or  proceeds  is  "  extended  "  to  the  amount  column.     See  page  70. 

Note.  — In  this  purchase.  Corn  account  is  Dr.  for  the  cost  of  the  corn ;  Flour  account  is  Dr.  for 
the  cost  of  the  flour ;  and  Cash  account  is  Cr.  for  the  entire  amount  of  money  paid.  See  Journal, 
page  72. 

Jan.  4.  Sold  S.  B.  Todd,  for  cash,  9  bbls.  superfine  flour,  at  $  ?  ;  75  bus.  corn,  at  ?  ^  ; 
total,  %  ?  . 

Note.  —  In  this  sale,  Cash  account  is  Dr.  for  the  total  amount  of  cash  received ;  Flour  account  is 
Cr.  for  the  proceeds  of  the  flour  sold;  and  Corn  account  is  Cr.  for  the  proceeds  of  the  corn  sold. 
See  Journal,  page  72. 

Jan.  5.  Bought  of  Charles  H.  Curtiss,  on  credit,  25  bbls.  superfine  flour,  at  $  ?  ;  750 
bus.  corn,  at  ?  ^  ;  total,  $  ?  . 

Jan.  5.  Sold  David  Dodge,  on  credit,  7  bbls.  superfine  flour,  at  $  ?  ;  150  bus.  corn,  at 
?  ^  ;  total,  f  ?  . 

Jan.  6.  Sold  James  Dunn,  for  cash,  8  bbls.  extra  flour,  at  $  ?  ;  300  bus.  corn,  at  ?  ;>  ; 
total,  $  ?  . 

Jan.  8.  Paid  Charles  Carroll  cash  for  rent  of  store  for  3  months  from  Jan.  1,  at 
$20,  $?. 

Jan.  8.   Received  $  20  cash  of  Benjamin  Butler  on  account. 

Jan.  9.   Paid  Aaron  Austin  $  50  cash,  on  account. 


FIEST  SET  63 

Jan.  10.  Bought  of  Aaron  Austin  30  bbls.  Minnehaha  flour,  at  $  ?  ;  900  bus.  corn, 
at  ?  ^  ;  total,  $  ?  ;  gave  him  in  payment,  cash,  .|  200 ;  balance,  $  ?  ,  to  remain  on  account. 

Note.  —  In  this  purchase,  Flour  account  is  Dr.  for  the  cost  of  the  flour  bought;  Corn  account  is 
Dr.  for  the  cost  of  the  corn  bought ;  Cash  account  is  Cr.  for  the  amount  of  cash  paid ;  and  Aaron 
Austin  is  Cr.  for  the  balance  of  the  bill  unpaid.    See  Journal,  page  73. 

Jan.  11.  Sold  Benjamin  Butler  500  bus.  corn,  at  ?  ^  ;  20  bbls.  Minnehaha  flour, 
at  $  ?  ;  total,  $  ?  .  Received  cash,  in  part  payment,  $  175 ;  balance,  f  ?  ,  to  remain  on 
account. 

Note.  —  In  this  sale,  Cash  account  is  Dr.  for  the  cash  received ;  Benjamin  Butler  is  Dr.  for  the 
amount  of  the  bill  unpaid  ;  Corn  account  is  Cr.  for  the  proceeds  of  the  corn  sold  ;  and  Flour  account 
is  Cr.  for  the  proceeds  of  the  flour  sold.     See  Journal,  page  73. 

Jan.  12.  Bought  of  Aaron  Austin  20  bbls.  Minnehaha  flour,  at  |?  ;  gave  in  pay- 
ment, cash,  $  08.50 ;  balance  on  account. 

Jan.  13.   Received  S§  50.50  cash  of  David  Dodge*  to  apply  on  account. 

Jan.  13.  Sold  David  Dodge  750  bus.  corn,  at  ?  <?  ;  25  bbls.  Minnehaha  flour,  at  $  ?  ; 
total,  ^  ?  .     Received  ^  250  cash,  in  part  payment ;  balance  on  account,  |  ?  . 

Note.  —  The  student  should  ascertain  whether  all  vouchers,  receipts,  and  bills  of  parcels  are 
made  out  and  filed,  by  comparing  with  the  following  statement. 

Vouchers  used  from  Jan.  2  to  Jan    13,  inclusive. 

Meceipts 
Incoming  Outgoing 

Jan.    3.   E.  A.  Taylor  to  Th.  E.  Student.         Jan.    8.   Th.  E.  Student  to  Benj.  Butler. 
"      9.    Aaron  Austin  "  "13.  «  David  Dodge. 

Bills  Receipted 

Jan.    4.   W.  C.  Smith  to  Th.  E.  Student.         Jan.    4.   Th.  E.  Student  to  S.  B.  Todd. 
"      8.   Charles  Carroll  "  "      6.  "  James  Dunn.   . 

Bills  not  Receipted 

Jan.    2.   Aaron  Austin  to  Th.  E.  Student.        Jan.    2.   Th.  E.  Student  to  Benj.  Butler. 
"      5.   Charles  H.  Curtiss        "  "      5.  "  David  Dodge. 

Bills  Receipted  in  Part 

Jan.  10.   Aaron  Austin  to  Th.  E.  Student.       Jan.  11.    Th.  E.  Student  to  Benj.  Butler. 
"    12.  "  "  "13.  «  David  Dodge. 

Note.  — The  student  having  entered  all  the  transactions  to  Jan.  15  in  the  practice  ledger,  and 
taken  a  trial  balance,  may  test  the  correctness  of  his  work  by  comparing  the  footing  of  his  trial 
balance  with  the  following  exhibit. 

Footing  of  Trial  Balance,  Jan.  13. 

List  12  3  4  5  6 

$40.55.75         .    $4744.25  $4832.75  $4921.25  $5009.75  $5098.25 


64 


APPLICATION  OF  PRINCIPLES 


Form  of  Practice  Ledger 


^v. 

^/b.  (o.  ^tud&9it    ^V. 

ht 

• 

ha/i 

ylci  hacLab 

&U 

2 

ZJ<^<^ 

6 
/3 

1/2 
282 

3  9  5 

66 
60 

1  5 

/Cf— 

3 

66 

60 

(Zdwro  CCiA/Qytl'fi 

^ 

60 

jayyi. 

2 
/O 
/2 

z^^ 

60 

60 

Ml 

1 

j(W^. 

2 

/06 

Z^- 

2 

37 

20 

5  3  9 

ff 

r- 

/66 
/37 
206 
/37 

7  5  0 

60 
60 

- 

^ 

68 

06 

t  cr 

IStnfmn.1^  fSuttth 

ff 
ff 

O 

10 
f2 

// 
ff 
ff 
ff 

6 

6 

// 

13 

^6 

/66 
/96 

5  4  1 

16 
60 

1^- 

2 
// 

S7 
206 

2  4  3 

20 

2  0 

"^        1 

^ 

^ 

J*^ 

^d^fv                    1 

^aiyTL 

2 

/600 

d 

/^ 

60 

/Cf- 

fam.. 

f 

200 

1^— 

^ 

33 

76 

// 

^- 

^/ 

^^ 

// 

^ 

ci'^J 

ff 

6 

300 

ff 

6 

67 

60 

8 

/8^ 
20 

60 

8 

60 
60 

ff 

fO 

360 

8  6  0 

ff 
ff 

6 
// 

136 
226 

// 

/J 

/76 

66 

260 

2  2  7  7 

60 

9  0 

Z^ 

Zi' 

200 
68 

7  6  8 

60 

ff 

13 

337 

7  9  8 

60 

1  5 

h^. 

S^hial  ^oLlcvne& 

^V. 

II             1       III            II 

^6^2^          1 

60 

2^3 

2277 

20 
cfO 

cj'/l.   (o.   cJ'tucl&n^t 
CLoy'bcyyi  60ioattm^ 
Bem/j.  Eutt&v 
€cmA 

/600 

639 

20 

763 

^ 

fci'/ 

60 

7^ 
3^6 

60 
16 

(Tlhx^y.     /if.     ^UlClM 

^/-37 
66 

60 
60 

€%fd^tnA^                1 

'9- 

fciru. 

ci* 

/q 

^^ 

760 

S^icyuA, 

6^/ 

tf 

8 

60 

7  9 

5  0 

860 

^xywn^ 

798 

76 

'^666 

76 

€(fu 

/CtU 

^yiiAivi 

^665 

76 

FIRST  SET 

Form  of  Statements 


60 


Lo- 


•M^a^.       ^CLi/VUi. 


S^tauAy 

l}cil^L&  at  ZOKaotd 

^80.26 

821.26 

760. 

7/ 

26 

^cywyv 

^7^8.76 
150. 

nS.  76 

€0^ 

860. 

88 

76 

€'?c^eAa^& 

J'wv-emXxywif,  Remt  If  ^o-c 

f  7^.60 
d        66.26 

/3 

26 

Net  0am* 

146 

75 

/6O 

00 

/6O 

00 

0? 

'^lnm^0.lcht  Ml 

%tbnvtrbt,  fan.  /d, 

/f               1 

'vWv^i 

^&} 

S^tcyuAy 

^&v  Jnv-eA%t(yiAf 

280 

26 

^(yyyv 

//             // 

160 

Remt  If  ^at 

//             // 

66 

26 

€a^/v 

d/yiiZ.  on  ka■')^ci 

/6/^ 

qo 

CLoAxy^^  (Lu^tvn 

//       cLu&  kUn.  cy>^  % 

^8(^ 

BeAvj.  Butt&h 

/f             ff         Vl&             ff 

223 

20 

€k.  /i^.  ^wvUm 

//■         //      kv^yu      f' 

^37 

60 

2>aAHyci  ^adcjf& 

//         //      ^rve,         *f 

338 

66 

f/600. 
1^6.76 

/6^6 

76 

2673 

26 

2673 

26 

*  Italic  type  in  statement  indicates  red  ink. 


66 


APPLICATION  OF  PRINCIPLES 


Itemized  Bills  —  Outgoing 
Bill  not  Receipted 


^mtjambi/yi  BiAtttv, 


HoMEviLLE,  (state),  fdnUdVU  2,  19- 

Bought  of  Th.  E.  Student. 


6  6^6-U,.  (o'xZva'  S^tcHvv 


@   f6.20 


S7 


20 


Bill  Receipted  in  Full 


g.  8.  ^odd, 


HoMEViLLE,  (state),  ^dniccivu  ^,  19- 


Bought  of  Th.  E.  Student. 


68 
33 


06 
76 


^/ 


80 


Bill  Receipted  in  Part 


fSbrufdmyi/vb  ButhAy, 


HoMEviLLE,  (state),  ^a,ri.iA.a,vif  / / ,  19- 

Bouo;ht  of  Th.  E.  Student. 


600  (yu^.  ^o-VYi 
20  {^(^U.  TninAv.  Mauv 


@  .^6 

@   ^7.80 


/66 


38/ 

176 
206 


FIRST  SET 


67 


Itemized   Bills  —  Incoming 
Bill  not  Receipted 


cS^/v.   (D.   ^tAuUwt; 


HoMEViLLE,  (state),  jamvcLiy,  2,  19- 

Bought  of  Aaron  Austin. 


20  (}-{}'U^.  SoctvO'  ^Lo-t 


@   f6.26 


106 


Bill  Receipted  in  Full 


3^'fb.  8.  cfiyud^'nt, 


HoMEViLLE,  (state),  ^amccivy  ^,  19- 

Boiight  of  W.  C.  Smitpi. 


600  (yu^.   €aw^  @         .^0 

SO  ^-^-toy.  ofu^^&v.  S^tcnov  @   f6.60 

10.  (g,  ^mMk 


200 
/66 


866 


Bill  Receipted  in  Part 


HoMEViLLE,  (state),  faniuivif  /O,  19 — . 
Bought  of  Aaron  Austin. 

30  6~{yU.  mU'yi    Mawv                     @   f6.S6 
(^00  (y-u^.  ^vn                                      @         .^0 
f^&^avu&d  €a^k,  fan.  10,  /q — 

206 
860 

60 

666 
200 

60 

866 

60 

68 


APPLICATION  OF  PRINCIPLES 


RECEIPT   BOOK 

Receipts  given  for  money  received  should  be  recorded  in  the  Receipt 
Book.  The  stub  should  be  filled  out  before  the  receipt  is  written  and 
detached. 

Form  of  Receipt  Book 


05 
tH 

5^ 


^    10 


^ 

^ 


^ 


•1 


8     ^ 


— 



1 

Y 

t- 

Ci 

n 

tH 

'c 

H^ 

^ 

P 

^ 

^^ 

0>) 

^ 

'^ 

^ 

v^ 

'^^ 

X 

^ 

^ 

^ 

s 

^ 

^ 

CO 

4. 

S 

2- 

^ 

> 

.^ 

0 

i 

> 

1  g 

W 

■^     <i 

0 

1 1 

0 

^ 

.     ^^ 

^ 

^ 

.§    ^ 

6 

^ 

^  ^ 

^ 

;4; 

>i-i 

>^ 

k  W, 

>!•; 

/f^ 

/>^ 

/' 

[     A^  ^T^  II 

§ 

.^ 

% 

^ 

^ 

1 

^ 
%. 

^ 
^ 

^ 
H. 

^ 

^"^    g 

'^^ 

^ 

1 

^ 
^ 

i 

i3 

5>        "+0 

'i 

. 

v<> 

^        ^ 

^ 

^ 

^ 

-^ 

^  ^ 

^ 

.« 

g 

"^ 

,1 

^ 

+4 

^>^ 

1 

a*       a 

'« 

^ 

a> 

f5 

^ 

^ 

^ 

O) 

B 

-^i 

^        ^ 

-^     2 

s= 

0 

0 

^ 

a 

0 

6 

■^ 

2 

s 

0        ^ 

Q     & 

<1 

^ 

^ 

ft 

^ 

-^ 

pti 

;^H 

p 

^ 

<I1 

^        ^ 

FIRST  SET 

Form  of  Receipts,  Incoming 


G9 


//^  '''^/i,jQ  HoMEViLLE,  (state),  ^L^muivif  S^  19 — . 

^x     \  Eeceived  from  ^/i.  €.  otXtcd&'yit 

X     \    c4'i/>^e^t&&1^  and  ^^Jiqq  -s.^^ 


Dollars, 


[Oh  a  t(y)ia^  t^al  at  f^''^/i 
Xo. 


S.  (Z.  S^dytoh. 


fSO  ^^^liQQ  HoMEViLLE,  (state),  ^anuav^  ^,  19 — . 

Keceived  from  <S^k.  (o.  oftud&nt 

A     I   to  ajc-jiitif  o-n  aa^o-ivnt. 


^  >J     \    <S^i'ltif  and  ^^1^ 


I 


W 


No. 


ddvaru  CCiLotlTb. 


Jnvtmt&hy  af  ll'Tb^cL  S^vap&vttf,  fcv'J^.  13,  /f — .  JuAt  / 


6  ^^^.  ^xXa/jl  S^Lyu^v, 

@ 

f5.26 

3/ 

60 

d<^/     ff       ^\i/f<i&v.      'f 

@ 

6.60 

i'/f 

60 

6     //        Tl'ii.'ym.       ^f 

@ 

6.86 

3^ 

26 

280 

26 

37 0  6-11^.  (ky<yvyi, 

@ 

.^0 

160 

S^l^  tcyyi^  ^xyat,  itmi^ed, 

@ 

6.60 

/6 

26 

2^1^  ^fvao..  Remt,  jiiv&jd.aid, 

@ 

■  20. 

60 

66 

26 

Note.  —  These  articles  are  inventoried  at  cost.  Each  student  will  use  his  own  price  list  in 
making  his  inventory. 

Instruction.  —  After  the  student  has  prepared  the  business  statement  and  the  finan- 
cial statement  and  properly  filed  them,  he  may  proceed  to  the  "  second  working,"  using 
the  day  book,  journal,  ledger,  and  cash  book,  as  directed  on  page  61. 

After  writing  the  day  book,  compare  the  total  footing  with  the  footing  of  the  trial 
balance  as  shown  on  page  63,  and  ol)tain  the  teacher's  approval  of  your  work. 

If  the  cash  book  entries  are  correctly  made,  the  balance  on  hand  Jan.  13  will  agree 
with  the  amount  given  in  the  following  table. 

Cash  on  Hand  at  the  Close  of  Business,  January  13,  ig— 

Listl  2  3  4  5  6 

$1514.90  $1511.75  $1508.60  $1505.45  $1502.30  $1499.15 

After  journalizing,  compare  the  footings  of  the  journal  with  the  footing  of  the  day 
book,  and  show  your  journal  to  your  teacher. 


APPLICATION  OF  PRINCIPLES 


"DaLj  Book  (Separate) 

/-{amtuilLt,  ^u^QMij,  fdn^u^civif  /,  /f- 


c/    y<z/ tti^le/nt)  Aciv-&  tkCoy  cLau  ^Aym.'yyLtn^&cL 
— ■ £ 


JScnicfkt  a^  CLa,uyyi  CLuoZv^i,  an  %, 

20  {y{^U,   €xlu:v  Ma^v  @      $6.26 


6  Ll^U^.  (o-xtvcu  S^tawv                 @      f6.20 
S 


8  ta'yt^  ^aaC,\cl&tlu&i&cl  j-o^n.  2 ,  <f6.  60 
^^-^if 


Bauc^kt  aj^  W-.  ^.  ofm^itk,  ^av  (^ouQyk, 

600  {ywQ,.  (^^n  @  .¥-0 

80  d^^.  <^w^ev.  S^tawv  @      $6.60 

f 


cfalcl  c/.  ^.  3^acLcl,  'f-av  ^Io^qA, 

76  {^-li^.  (^avn                               @            .¥-6 
6 


Batujkt  at  ^kao..  /if.  (^A.itiA^,  an  %, 

£6  (^-{y^U,  cfu^iiy&v.  ^tatov  @      $6.60 

760  {^uQ..  ^a^uyv                            @            .^0 
^ 


^^atcL  hcLV-id  ^acC^&,  an  %, 

160  6^u^.  £avrv                             @            .^6 
6 


8  {yO^U.  €'xtia.  S^lcywv  @      $6.20 

800  ^^^.  ^a'vn  @  .^6 

CLyyuaimt  tavw-a^icL, 


/66 


68 
88 


/87 
800 


¥-6 

67 


/86 


06 
76 


60 


/6 

60 


60 


1600 


f06 


87 


/^ 


866 


^/ 


^87 


/8¥- 


2868 


60 


80 


60 


6i 


6_0_ 
26\ 


*  The  check  marks  in  this  column  are  placed  here  after  each  transaction  has  been  journalized. 
They  indicate  the  journalizing  of  the  transaction. 


FIRST  SET 


71 


Day  Book  (Separate),   Continued 


g 


/^e^&Cv-&cl  ^a^k  o-l  iS&ri'joi'yyvi-yi  fSutt&v,  cyyi  % 
q 


/Q 


Idaiufkt  aj-  Cla-io-n  6C^c4.tvK  , 

30  6'(^l^.  Tyiuyt'w&ka.ka^  S^iaiix.    @    <$6.S6 
^00  {y-uQ.,  (^o-wi  @         .^0 

'^OyV-t'  kiy'yny  ^a.Q.k;  v-n  Jh^olaL  jiiaAprL&'yit 

Balan(^&  cy}^  % 
// 


600  {yiiQ..  ^avn  @  .f  J 

20  6.{yU.  mUn.  Mawv  @    fJ.SO 

R&d&iv-ecl  ^MA^k,  in  js^ciiC  ja^cLY*'^^'^^ 

/2 


ISaiu^kt  o^  CCanMn  Ctii^tin 

20  (^Uq..  Tninn.  Maui  @   $6.86 

^av-&  kv^n.  in  'fix^it  'fi^i^yyueAit,  €^a^k 

/^ 


R&e&iu&d  ^^(Myk  at  Jbciv-ict  chacl^&,  an  % 
fS 


^atcL  ho'V-ici  ^adcfdy 

760  iyuQ..  ^avn  @         .^6 

26  6.{yU.  mvKn.  Mauv  @   $7 -SO 

R&€&iv-&cl  (^a^A,  in  ^ci'iL  jii'CLy,'my£.nt 
^cita'}i€&  an  % 

<S^aotim^ 


.206 
360 


200 
366 


/66 


/76 


68 
68 


337 
/^6 


260 


60 


60 


60 
60 


60 


60 


2863 
60 

20 

60 


666 


26 


38/ 


/37 


66 


632 


^666 


60 


60 


60 


76 


*  In  a  Day  Book  the  right-hand  money  column  is  called  the  amount  column,  and  the  one 
at  its  left  is.  called  the  item  column. 


72 


APPLICATION   OF  PRINCIPLES 


Journal  (Separate) 


Hayn^v-ilU,  S^u^'auday,  Jcu'yv'Vtdvy 

2,  /f 

— 

* 

/ 

(LoiJv 

/500 

/ 

S^k.  (D.   QfttccC&nt 

/500 

^ 

Stauv 

^ 

105 

/ 

./I 

/05 

/ 

fSe/KJayyvU^  Eutl&v 

37 

20 

2 

Statov 

37 

20 

/ 

<o90^&n4i^ 

a 

19 

50 

/ 

/^ 

SO 

1 

■f- 

2 

^aiAV 

200 

2 

3t<yuA/ 

/65 

/ 

If 

365 

^ 

/ 

(^x^k 

^f 

80 

£ 

dl-lo-uv 

58 

05 

2 

33 

75 

2 

StcyuAy 

fsr 

60 

2 

^av-yv 

300 

2 
2 

(^ka^,  /if.  ^witio^ 

/f2 

65 

^37 

50 

^a,v-icL  Jbod(^ 

0 

2 

StaiLV 

^5 

/5 

2 

67 

50 

f 

^Jv 

18^ 

60 

2 

S^to-liA, 

H 

60 

2 

S^ootincfQ. 

/35 

2S53 

25 

2853 

25 

*  The  figures  in  this  column  are  placed  here  after  each  entry  has  been  posted.    They  indicate 
the  page  of  the  ledger  on  which  the  entry  is  posted. 


FIRST  SET 


73 


Journal  (Separate),   Continued 

/{antbv-lLto,  lllaruidip  jcuvitdhy  8 ,  /f- 


S^aativicfQ, 

^avw-LiicC 

* 

* 

/ 

S?o^nQ^ 

6o 

/ 

o 

60 

fj 

/ 

(^a^k 

20 

/ 

/7 

20 

/ 

/ 

CLa.'uyi^  dua-ti-yv 

• 

60 

/ 

60 

2 

S^to-tvv 

206 

60 

2 

^av^v 

360 

/ 

^.OQyk 

200 

/ 

1  / 

366 

60 

/ 

^Jv 

176 

/ 

B&n^'a'vyul'yv  ISiaZL&v 

206 

2 

€(yvyv 

226 

^ 

/  ^ 

/66 

2 

Stouh 

fS7 

/ 

(^a^k 

68 

60 

/ 

/  ? 

68 

60 

/ 

^a^/v 

66 

60 

2 

66 

60 

JO 

/ 

€a^/i 

260 

2 

^duCd  jyo-d<^& 

282 

60 

2 

(ILavyv 

337 

60 

2 

Sto^v 

/^6 

^666 

76 

^666 

76 

*  In  a  Journal  the  left-hand  money  column  is  called  the  Dr.  column,  and  the  right-hand 
money  column" is  called  the  Cr.  column. 


74 


APPLICATION  OF  PRINCIPLES 


Open  Ledger 


foi/yi. 

2 

£aJv 

/ 

/600 

(lciu>ru  (ZiA^otrnv 

fcvn. 

f 

(EaJv 

2 

60 

;9— 
fayyi. 

2 

S^tauv 

/ 

f06 

ff 

/O 

''      V  ^xybn. 

2 

366 

60 

\ 

// 

12 

//              // 

2 

68 

60 

-  BtJif/ziftOn  tdicttth 

19- 

i* 

S^tcyuAy 

/ 

S7 

20 

/Cf— 

fan.. 

8 

^o^ 

2 

20 

// 

// 

//      V  ^(yim. 

2 

206 

^d^'lb 

/9- 

i*  ^tAi^cLemt 

/ 

/600 

/9- 

3 

^ocja.em^& 

/ 

/^ 

60 

// 

^\^w^^civLe^ 

/ 

9/ 

80 

// 

^ 

ofumAv'im' 

/ 

366 

// 

6 

// 

/ 

18^ 

60 

// 

8 

€'?0fl-&}^Qy& 

2 

60 

ft 

8 

fSeAij.  £utt&i 

2 

20 

// 

^ 

a.  CCuoZuyi 

2 

60 

// 

// 

ofti/hvd\.iy&Qy 

2 

/76 

// 

/O 

'SUI'VcLvL&Qy 

2 

200 

*f 

/3 

haA}-ici  ^o-cLc^& 

2 

66 

60 

// 

12 

// 

2 

68 

60 

tt 

fS 

^Uy^uivie^ 

2 

260 

&x/fhmv3t.^ 

3 

^x^^ 

/ 

/^ 

60 

// 

8 

// 

2 

60 

FIRST  SET 
Open  Ledger,  Continued 


75 








l^f— 

— 

ja^ru. 

^ 

ofuncLw&a' 

/ 

^37 

60 

hcuvicL  hodab 

-jj=r 

\/9- 

fa^v. 

^ 

oftcndvl&Q. 

/ 

//2 

66 

jo/yi. 

/c5* 

^.oaJv 

2 

66 

60 

// 

/ci' 

// 

i' 

282 

60 

Sto-iih 

f9- 

/9~ 

fcuru. 

^ 

(X.  CL^vloXaa^ 

/ 

/06 

fam.. 

i* 

BsAlyf.     ButteAy 

/ 

S7 

20 

// 

^ 

^a^h. 

/ 

/66 

// 

^ 

^a^i 

/ 

68 

06 

// 

6 

€L/i^.(^uA.tU^ 

/ 

fS7 

60 

// 

^ 

^dv-ld  ^aclxp 

/ 

^6 

/6 

// 

fO 

^iiyuivi&^ 

^ 

206 

60 

// 

^ 

^^k 

/ 

H 

60 

// 

/2 

tt 

2 

fS7 

// 

2 
2 

/66 

^avTb 

f^- 

/9- 

fa^n. 

f 

^lajQyh 

/ 

200 

fa^. 

f 

€aJv 

/ 

33 

76 

// 

6 

^k./i-'.^uxtu^ 

/ 

300 

// 

J 

^a-v-icL  ^cx£cf& 

/ 

67 

60 

// 

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^'wncObie^ 

2 

360 

// 

/ 
2 

136 
226 

. 

// 

/ci' 

ff 

2 

337 

60 

76 


APPLICATION    OF  PRINCIPLES 


Index  Book,  for  Sets  i  to  3 


A                          j 

E 

I 

8,     / 
fO 

^'X/^e'ytQ.&     2/ ,     /2,     / 
(ou&v&tt,  €cL.        7,    ^ 

f 

Jncfte^^  V  €a.            /2 

B 

F 

J 

Ba,ta,ne&       SS, 

7,    / 
13,    6 

><Wi.           /8,      (^,     3 

fe.nki')^,  fakyi           /2 

c                 1 

G 

K 

/f.     2 

8,    2 

/6,    ^ 

^i^y  V  ta.                  fO 

fCruUfht  V  fCiruf        /7 

»      1 

H 

L 

^o-dxp,  JbavlcL 

7,    S 

22 

La^V^CLiyv  2/,  /3,  f 
Latk\x>^,  £&ii^VQ.,      /  2 

FIRST  SET 


77 


Index  Book,  Continued 


M 

Q 

u 

Tyi&ouL,  iTlavian 

fA 

0.^li'yv'>^  V  ^. 

/9 

?HataaAi.&Q. 

20 

• 

N 

R 

V 

ofoitan^  cAatkc^n 

/8 

/  / 

/2 

( 

20 

O 

s 

W  &  X 

QU.an,  ^vvin, 

/8 

^tiuL&nt,  3^k.  €.   7 ,   / 

WkexAt                         /^ 

iaU 

/f 

/6 

20 

P 

'      1 

Y  &  Z 

^av^                       // 

,     ^ 

<S^'i^t&v,  clko-nua^ 

20 

^ancL,  S^kiU/^H' 

f7 

* 

78 


APPLICATION  OF  PRINCIPLES 


Cash  Book,  Left-hand  Page 


Dr. 

^cutA  f^molv-uL 

/Cf— 

fa.yi. 

J* 

cl^^.  ^  ^tAUemt 

Jnv-mZ&ci  V}^  JSua^i'vi&iQy 

1500 

// 

^ 

^IcyuA.  V  €(yim  ■ 

Met  c/.  B.  ^acLcL 

f  / 

80 

(5^ 

ff               ff 

€.71  CL<M<yivriL 

/8^ 

60 

/776 

^0 

20 

/776 

^0 

8&n^f.  Eutl&v 

// 

// 

€cyi/n.  V  McyuA. 

ofo-td  B&nf.  BiitteA. 

f76 

// 

/ci' 

^CLIHycL  ^acL(f& 

H'^'V  CU-€xyumt 

66 

60 

// 

/c? 

R&^eAjv-&cL 

250 

60/ 

60 

/o.^. 

/^ 

/60 

/S^/ 

90 

/8^8 

^0 

^OAHycl  hi>d<^£y 

// 

/7 

^avky  V  Mcnov 

ofatcC  ^a.v-Cd  ^adcf& 

^0 

// 

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€9C/fs^£AV^& 

hmJo  Racyyyv,  ^^.cyufs.  /lf(yii/-& 

^ 

// 

i'^:? 

^avn  V  B&£^1 

d'ald  He.nxAf  UaJc 

86 

/6 

// 

i*^ 

ff              // 

^^ 

26 

279 

^0 

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J,  J, 

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76 

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90 

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so 

Miftci.,    S'avk,   V 

Be4 

ff 

i'c5' 

B&nj.  fSutl&v 

€.ru  CU^M-ii^nt 

260 

/r 

i-j 

^tcMiA.  V  /8e^£.( 

^o-id  /Se/yif.  ButteA, 

60 

// 

i'^ 

//      Sdw-ciid  <ov-SA.&tt 

76 

/' 

i'/ 

^cLv-vct  ^acUje. 

€.70  CL^^aiLnt 

/OO 

// 

i>^ 

//           // 

ff         /f 

/OO 

// 

c5>^ 

^xyim.,   <3^ta^^A^,  V^ 

ofatd  /lftmA.n^  But^koA^d 

^02 

^0 

B&4 

R&e^&vV'&d 

/062 

90 

Bala/ne-e^  {^-uywcjht  dcyum 

1^66 

06 

2508 

95 

FIRST  SET 


79 


Cash  Book,  Right-hand  Page 


Cr. 


^an. 


ia^n. 


/6 
f7 


iamy. 


27 


Stauv 


,   ^(yyh,    V 
(yinv 

^k.  /if.  &uaZU^ 


Balance  on  hand 


3  'yyva^-.  R&nt 


fSO 


//  //  // 

Balance  on  hand 

JS(yu,c^kt  al  S^v&cL.  S^cyui 
jlaoy.  L&cyyioAyci 
Should 
Balance  on  hand 


il'vi  CC$^(yu.nt 

S'aid 

Balance  on  hand 


/9 
366 


60 

60 

200 

68 


f76 

/60 

/3 


260 


280 


60 


38^ 
1391 


/776 


60 


378 
1514 


18^3 


338 
1456 


/7W 


60 


/^2 
1716 


2608 


60 
90 

To 


60 
90 

To 


26 
05 


30 


60 
45 


^6 


80  APPLICATION  OF  PRINCIPLES 

ERRORS    AND    HOW   TO    CORRECT   THEM 

HOW  ERRORS   MAY  ARISE   IN   POSTING 

Unless  great  care  is  exercised  in  posting,  some  of  the  following  errors 
may  be  committed  :  Posting  an  item  to  the  wrong  account ;  posting  an 
item  to  the  wrong  side  of  an  account ;  transposing  the  figures  of  an  item ; 
posting  the  wrong  amount  to  an  account ;  posting  an  item  a  second  time 
from  failure  to  postmark  as  soon  as  posted  ;  writing  figures  in  the  wrong 
column,  —  dollars  in  the  column  for  cents,  or  cents  in  the  column  for 
dollars ;  omitting  an  item  in  posting ;  etc. 

HOW  TO  FIND  ERRORS   MADE  IN  POSTING 

When  the  sum  of  the  debits  does  not  equal  the  sum  of  the  credits,  an 
error  exists  which  must  be  found  and  corrected.  The  only  sure  way  of 
finding  errors  is  to  make  a  systematic  examination  of  every  entry. 

The  equality  of  the  ifootings  of  the  two  sides  of  the  trial  balance  is  not 
a  positive  proof  of  the  accuracy  of  business  records,  but  only  a  test  of  the 
correctness  of  the  posting.  Many  errors  may  exist  when  the  two  sides  of 
the  trial  balance  are  in  equilibrium.  Amounts  may  be  posted  to  the  right 
side,  but  to  the  wrong  account;  a  Dr.  entry  and  a  Cr.  entry  of  equal 
amounts  may  be  omitted,  or  a  transaction  may  be  "  dropped  "  altogether ; 
a  transaction  may  be  posted  twice,  etc.  If,  however,  the  trial  balance  is 
not  in  equilibrium,  there  is  an  error  which  must  be  found  and  corrected. 

1.  Examine  the  pencil  footings  in  the  ledger  and  ascertain  whether 
they  have  been  correctly  transferred  to  the  trial  balance. 

2.  Go  carefully  over- the  additions  in  the  ledger,  adding  in  the  opposite 
direction  from  the  original  addition. 

3.  Examine  each  entry  in  the  journal  to  see  that  it  is  properly  posted 
to  the  ledger  and  postmarked,  checking  (y/)  each  entry  found  to  be  cor- 
rectly posted. 

4.  Go  carefully  over  the  additions  in  the  journal. 

5.  Ascertain  the  amount  of  the  error,  and  then  see  if  there  is  an  item 
of  equal  amount  which  has  not  been  posted. 

6.  See  if  there  is  an  item  in  the  journal  or  ledger  equal  to  one  half 
the  amount  of  the  error,  and  see  whetlier  it  has  been  posted  to  the  wrong 
side  of  the  account. 

7.  See  if  the  amount  of  the  error  is  exactly  divisible  by  9,  for  if  two 
adjacent  figures  have  been  transposed  the  difference  between  digits  thus 
transposed  will  be  equal  to  the  quotient  obtained  by  dividing  the  differ- 
ence of  the  amounts  by  9.  For  instance,  if  92  be  written  29  the  error 
will  be  63,  the  difference  between  92  and  29 ;  63  divided  by  9  is  7,  and 
the  difference  between  the  digits  9  and  2  is  7. 


CLOSING    THE   LEDGER  81 

t 

HOW   TO   CORRECT   ERRORS   WHEN   FOUND 

When  an  error  is  found  in  the  clay  book,  or  in  any  other  book  of 
original  entry^  write  neatly  across  tlie  entry  the  Avord  Void^  and  write  a 
new  entry  which  shall  be  a  correct  statement  of  the  transaction  and  also 
an  explanation  of  the  erroneous  entry. 

Make  no  erasures  in  a  book  of  original  entry. 

Errors  found  in  the  JDurnal  should  generally  be  corrected  in  the  same 
manner  as  errors  found  in  the  day  book. 

An  error  in  the  ledger  should  be  corrected  as  follows :  When  an  entry 
has  been  posted  to  the  wrong  account,  rule  a  horizontal  red  line  through 
the  center  of  the  erroneous  figures,  and  post  the  entry  to  its  proper  place. 

When  an  item  has  been  duplicated,  rule  out  the  incorrect  one. 

When  a  wrong  amount  has  been  posted,  rule  out  the  error  and  place 
the  correct  amount  above  the  error. 


CLOSING   THE    LEDGER 
PURPOSE  OF  CLOSING   THE  LEDGER 

The  Purpose  of  Closing  an  Account  is  to  determine  its  net  result.  The 
net  result  shown  by  a  financial  account  is  a  resource  or  a  liability.  The 
net  result  shown  by  a  business  account  is  a  loss  or  a  gain.  The  net  result 
shown  by  a  proprietary  account  is  the  net  investment  in  the  business  or 
the  net  deficiency. 

The  Purpose  of  Closing  Financial  Accounts  is  to  determine  the  financial 
standing  of  the  business ;  in  other  words,  what  the  business  is  worth. 

The  Purpose  of  Closing  Business  Accounts  is  to  determine  the  current 
condition  of  the  business ;  in  other  words,  to  ascertain  the  prosperity  or 
the  adversity  of  the  business. 

The  Purpose  of  Closing  Proprietary  Accounts  is  to  determine  the  relation 
of  the  owner  or  the  owners  to  the  business. 

The  net  result  obtained  in  closing  financial  accounts,  combined  with 
the  inventories,  must  be  the  same  as  the  net  result  obtained  in  closing 
proprietary  accounts,  both  exhibiting  the  net  worth  or  the  net  insolvency 
of  the  business. 

PROCESS   OF  CLOSING   THE   LEDGER,  CURRENT  FORM 

1 .  Take  the  Trial  Balance.  —  The  ledger  is  said  to  be  in  balance  when 
the  sum  of  all  the  Dr.  items  is  equal  to  the  sum  of  all  the  Cr.  items. 

To  ascertain  whether  the  ledger  is  in  balance,  it  is  customary,  and 
always  proper,  to  prepare  a  statement  called  a  Trial  Balance. 

A  Trial  Balance  is  a  list  of  the  open  accounts  of  the  ledger  with  all 


82  APPLICATION   OF  PRINCIPLES 

the  Dr.  footings  or  Dr.  balances  in  one  column,  and  all  the  Cr.  footings    • 
or  Cr.  balances  in  another  column. 

The  footings  of  the  two  columns  of  the  trial  balance  must  be  equal 
before  commencing  to  close  the  ledger. 

2.  Prepare  the  Inventory.  —  Not  all  the  resources  and  liabilities  of  a 
business  are  recorded  in  the  financial  accounts.  Many,  such  as  merclian- 
dise,  real  estate,  interest,  etc.,  are  entered  in  business  accounts,  but  are  all 
the  time  changing  in  amount  or  value.  It  is  necessary,  therefore,  before 
closing  the  ledger,  to  ascertain  the  exact  value  of  all  property  entered  in 
business  accounts,  and  also  to  ascertain  whether  there  are  any  resources 
or  liabilities  which  have  not  been  entered  on  the  ledger.  This  operation 
is  called  "taking  stock,"  or  "making  an  inventory." 

3.  Close  Financial  Accounts.  —  To  close  a  financial  account  when  the 
footings  of  the  two  sides  are  equal,  rule  a  single  red  line  underneath  the 
items  across  the  money  columns  on  the  same  level ;  write  the  footings  on 
the  faint  line  below,  and\]bhen  rule  a  double  red  line  underneath,  extending 
across  all  the  columns  6xcept  the  wide  explanation  column. 

When  the  footings  of  the  two  sides  are  unequal,  enter  upon  the  smaller 
side,  in  red  ink,  the  difference  between  the  footings,  together  with  the 
date  of  closing,  the  word  Balance,  and  the  page  to  which  the  balance  will 
be  transferred. 

Rule  as  before,  a  single  red  line  underneath  the  items,  and  a  double  red 
line  underneath  the  written,  equal  footings. 

Bring  the  balance  forward,  in  black  ink,  to  the  opposite  side  of  the 
same  account,  underneath  the  double  red  line,  and  thus  restore  the  equilib- 
rium of  the  debits  and  credits  in  the  ledger. 

When  there  is  but  one  item  on  either  side  of  the  account,  and  these 
two  items  are  equal,  the  single  red  line  and  footings  are  omitted,  and  the 
double  red  line  is  drawn  just  under  the  items. 

When  there  are  more  items  on  one  side  of  the  account  than  on  the 
other,  a  diagonal  red  line  may  be  drawn  across  the  explanation  column. 
See  pages  8J:  and  85. 

4.  Open  a  Loss  and  Gain  Account  into  which  all  losses  and  gains  shown 
in  the  business  accounts  may  be  transferred. 

5.  Close  Business  Accounts.  —  To  close  a  business  account  when  there 
is  no  inventory  belonging  to  it,  enter  upon  the  smaller  side,  in  red  ink, 
the  difference  between  the  footings,  and  in  black  ink  transfer  this  differ- 
ence to  the  opposite  side  of  the  Loss  and  Gain  account. 

Rule  according  to  the  foregoing  directions. 

In  case  of  an  inventory  showing  a  resource,  credit  the  account,  in  red 
ink,  with  the  amount  of  the  resource  before  closing  the  account  into  Loss 
and  Gain.  Rule  as  before,  and  bring  the  resource  forward  to  the  Dr. 
side  of  the  same  account,  underneath  the  double  ruling. 


CLOSING    THE  LEDGER  83 

In  case  of  an  inventory  showing  a  liability^  debit  the  account,  in  red  ink, 
with  the  amount  of  the  liability  before  closing  the  account  into  Loss  and 
Gain.  Rule  as  before,  and  bring  the  liability  forward  to  the  Cr.  side  of 
the  same  account,  underneath  the  double  ruling. 

The  Dr.  side  of  the  Loss  and  Gain  account  will  now  show  the  losses  of 
the  business,  and  the  Cr.  side  will  show  the  ffains  of  the  business.  The 
difference  between  the  footings  will  show  the  net  loss  or  the  net  gain  of  the 
business, 

6.  Close  Loss  and  Gain  Account.  —  Enter  upon  the  smaller  side  of  Loss 
and  Gain  account,  in  red  ink,  the  difference  between  the  footings,  and  in 
black  ink  transfer  this  difference  to  the  opposite  side  of  the  proprietor's 
account,  or  in  proper  proportions  to  the  partners'  accounts  if  the  business 
be  that  of  joint  proprietors.  The  proprietor's  account  will  now  show  his 
present  interest  in  the  business,  or  the  partners'  accounts  will  show  their 
individual  interests  in  the  business. 

7.  Close  Proprietary  Account. — Enter  upon  the  smaller  side  of  the 
proprietor's  account  (or  partners'  accounts),  in  red  ink,  the  difference 
between  the  footings,  together  with  the  date  of  closing  and  the  page  to 
which  the  balance  will  be  transferred. 

Rule  as  before,  a  single  red  line  underneath  the  items,  and  a  double  red 
line  underneatli  the  written,  equal  footings. 

Bring  the  balance  forward  in  black  ink  to  the  opposite  side  of  the 
same  account,  underneath  the  double  red  line,  and  the  ledger  should  be  in 
balance. 

8.  A  Second  Trial  Balance  should  now  be  taken  of  all  the  balances 
brought  forward  into  the  reopened  accounts. 

PROCESS   OF   CLOSING  THE  LEDGER,   FULL  OR  FINAL   FORM 

1.  Take  the  trial  balance  and  prepare  the  inventory  as  in  current 
closing. 

2.  Close  Financial  Accounts.  —  Close  the  financial  accounts  as  in  cur- 
rent closing,  but  bring  the  balance  forward  in  black  ink  to  the  opposite 
side  of  the  Balance  account  in  the  ledger.  Rule  the  account  as  in  current 
closing. 

3.  Close  Business  Accounts.  —  Close  the  business  accounts  as  in  cur- 
rent closing,  but  bring  the  inventories  forward  in  black  ink  to  the  opposite 
side  of  the  Balance  account  in  the  ledger.  Rule  the  accounts  as  in  current 
closing. 

4.  Close  Loss  and  Gain  account  as  in  current  closing. 

5.  Close  Proprietary  Accounts.  —  Close  the  proprietary  accounts  as  in 
current  closing,  but  bring  the  balance  forward  in  black  ink  to  the  opposite 
side  of  the  Balance  account  in  the  ledger.  The  Balance  account  should 
now  be  in  balance. 


84 


APPLICATION  OF  PRINCIPLES 


Ledger  Closed,  Current  Form 


T/v.  S 

.    o 

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Jan. 

13 

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1 

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1 

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66\26 

CLOSING    THE  LEDGER 


85 


Ledger  Closed,  Current  Form,  Continued 


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86  APPLICATION  OF  PRINCIPLES 


FIRST  SET.  — MEMORANDA  OF  TRANSACTIONS,    Continued 

Instructions.  —  In  recording  tlie  following  transactions  in  tlie  various  books,  and  in  making 
out  the  vouchers,  the  pupil  will  observe  the  instructions  given  on  page  (il,  using  the  same  price  lists 
in  buying  and  selling,  and  the  same  buying  list  in  taking  the  inventory. 

The  posting  will  be  done  under  the  same  ledger  headings  as  in  the  first  half  of  the  month,  the 
same  accounts  being  continued. 

In  closing  the  ledger  use  the  full  or  final  form  of  closing.     See  page  83. 

Then  make  two  balance  sheets,  one  for  the  business  to  Jan.  15,  and  the  other  from  Jan,  15  to 
Jan.  31.    See  pages  94,  95,  and  96. 

Homeville,  Monday,  Jan.  15,  19 — .  Sold  Edward  Everett,  on  credit,  3  bbls.  superfine 
flour,  at  ^  ?  ;  75  bus.  corn,  at  ?  ^  ;  total,  %  ?  . 

Jan.  15.  Bought  of  Frederic  Ford,  on  credit,  8  bbls.  mess  beef,  at  ^  ?  ;  10  bbls.  prime 
pork,  at  $  ?  ;  total,  f  ?  . 

Jan.  16.   Received  ^  150  cash  of  David  Dodge  on  account. 

Jan.  16.   Paid  Charles  H.  Curtis.s  ^  175  cash,  on  account. 

Jan.  17.  Bought  of  Frederic  Ford  10  bbls.  mess  beef,  at  ^  ?  ;  15  bbls.  Minnehaha 
flour,  at  $  ?  ;  total,  f  ?  .     Gav^  him  ^  150  cash,  in  part  payment ;  balance  on  account,  %  ?  . 

Jan.  17.  Sold  David  Dodge  3  bbls.  prime  pork,  at  $  ?  ;  6  bbls.  extra  flour,  at  $  ?  ; 
total,  ^  ?  .     Received  $40  cash,  in  part  payment;  balance,  8  ?  ,  on  account. 

Jan.  18.  Sold  Edward  Everett,  on  credit,  5  bbls.  mess  beef,  at  8  ?  ;  100  bus.  corn,  at 
?  ^  ;  total,  ^  ?  . 

Jan.  19.  Sold  David  Dodge,  on  credit,  6  bbls.  superfine  flour,  at  $  ?  ;  2  bbls.  prime 
pork,  at  $  ?  ;  total,  %  ?  . 

Jan.  19.   Paid  eJames  Leonard  $13.25  cash,  for  drayage  to  date. 

Jan.  19.    Received  $4  cash,  of  George  Howe,  for  desk  room  in  office. 

Jan.  20.  Sold  Henry  Clark,  for  cash,  50  bus.  corn,  at  ?  ^ ;  1  bbl.  mess  beef,  at  f  ?  ; 
total,  $  ?  . 

Jan.  20.  Sold  Charles  Dowd,  for  cash,  2  bbls.  prime  pork,  at  $  ?  ;  3  bbls.  superfine 
flour,  at  $  ?  ;  total,  $  ?  . 

Jan.  22.  Bought  of  Frederic  Ford  15  bbls.  mess  beef,  at  $  ?  ;  15  bbls.  prime  pork, 
at  $  ?  ;  500  bus.  corn,  at  ?  ^  ;  total,  $  ?  .  Gave  him  $  250  cash,  in  part  payment ;  balance, 
$  ?  ,  on  account. 

Jan.  22.  Sold  David  Dodge  5  bbls.  superfine  flour,  at  $  ?  ;  4  bbls.  prime  pork,  at  $  ?  ; 
3  bbls.  mess  beef,  at  $  ?  ;  total,  $  ?  .  Received  $  75  cash,  in  part  payment ;  balance,  $  ?  , 
on  account. 

Jan.. 23.  Sold  Benjamin  Butler,  on  credit,  2  bbls.  prime  pork,  at  $  ?  ;  1  bbl.  mess 
beef,  at  $  ?  ;  3  bbls.  su^jerfine  flour,  at  $  ?  ;  total,  %  ?  . 

Jan.  23.   Received  %  250  cash  of  Benjamin  Butler,  on  account. 

Jan.  24.   Paid  Aaron  Austin  $280  cash,  to  apply  on  his  account. 

Jan.  25.  Sold  Benj.  Butler  4  bbls.  superfine  flour,  at  $  ?  ;  4  bbls.  Minnehaha  flour,  at 
$  ?  ;  2  bbls.  mess  beef,  at  $  ?  ;  total,  $  ?  .  Received  $50  cash,  in  part  payment;  balance 
on  account,  $  ?  . 

Jan.  26.  Sold  Edward  Everett  5  bbls.  Minnehaha  flour,  at  $  ?  ;  3  bbls.  superfine  flour, 
at  $  ?  ;  3  bbls.  prime  pork,  at  $  ?  ;  2  bbls.  mess  beef,  at  $  ?  ;  total,  $  ?  .  Received  cash, 
$75,  in  part  payment;  balance,  $  ?  ,  on  account. 

Jan.  27.    Received  cash,  $  100,  of  David  Dodge,  on  account. 

Jan.  27.    Paid  Charles  H.  Curtiss  cash  in  full  of  account,  $  ?  . 

Jan.  29.    Received  cash  of  David  Dodge,  $100,  to  apply  on  account. 

Jan.  30.  Sold  Henry  Burchard,  for  cash,  650  bus.  corn,  at  ?  ^ ;  2  bbls.  superfine 
flour,  at  $  ?  ;  2  bbls.  Minnehaha  flour,  at  $  ?  ;  6  bbls.  mess  beef,  at  $  ?  ;  total,  $  ?  . 


FIRST  SET 


87 


Vouchers  used  in  First 
Receipts 


lucoming 

Jan.  16,  From  Charles  II.  Curtiss. 
"     19,      "      James  Leonard. 
"     24,       "      Aaron  Austin. 
"     27,      "      Charles  II.  Curtiss. 

Outgoing 

Jan.  16,  To  David  Dodge. 
"     19,   «    George  Howe. 
«     23,   "   Benjamin  Butler. 
"     27,   "   David  Dodge. 

«     29    <'        ''  '' 

Bills  Receipted  in  Full 

Outgoing 

Jan.  20,  To  Henry  Clark. 
«     20,    "   Charles  Dowd. 
"     30,    "   Henry  Burchard. 


Set,  Jan.  15  to  Jan.  31 

Bills  Receipted  in  Part 

Incoming 
Jan.  17,  From  Frederic  Ford. 

Outgoing 
Jan.  17,  To  David  Dodge. 

a       22      ^^  *'  " 

"    25,  "    Benjamin  Butler. 
«     26,   "    Edward  Everett. 

Bills  not  Receipted 
Incoming 
Jan.  15,  From  Frederic  Ford. 

Outgoing 
Jan.  15,  To  Edward  Everett. 

a      18,    "  "  " 

"     19,   "    David  Dodge. 
"    23,   "    Benjamin  Butler. 


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Footing  of  Day  Book  and  Journal,  Jan.  31,  19 — 
Listl  2  3  4  5  6  . 

$3595.25  $3646.75  $3698.25  $3749.75  $^801.25  $3852.75 

Footing  of  Trial  Balance,  Jan.  31,  19— 
Listl  2  3  4  5  6 

$5731.00  $5804.00  $5877.00  $5950.00  $6023.00  $6096.00 


Cash  on  Hand,  Jan.  31,  19— 
Listl  2  3  4  5  6 

$1716.45       ■     $1711.85  $1707.25  $1702.65  $1698.05  $1693.45 


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94  APPLICATION  OF  PRINCIPLES 


THE   BALANCE   SHEET 

The  form  of  balance  sheet  on  the  opposite  page  is  both  comprehensive 
and  simple.  It  is  a  combination  of  the  business  statement  and  the  finan- 
cial statement,  and  will  afford  the  student  excellent  practice  in  arranging 
the  general  results  of  business. 

HOW  TO  PREPARE  A  BALANCE  SHEET 

1.  Rule  a  sheet  of  paper  to  correspond  to  the  form  on  the  opposite 
page.  The  paper  should  be  wide  enough  for  three  double  money  columns, 
one  single  money  column,  page  column,  and  account  titles,  (a)  Ascertain 
from  the  trial  balance  the  number  of  lines  required  for  the  open  accounts, 
and  add  six  lines  for  the  headings  and  the  footings.  (5)  Rule  the  border 
line  to  inclose  the  balapce  sheet,  (c?)  Rule  the  vertical  triple  lines  so 
that  the  double  money  cplumns  may  be  at  least  1^  inches  wide,  (^d)  Rule 
the  double  headline  2  spaces  below  the  top  border,  (g)  Rule  the  single 
sub-headline  across  the  double  money  columns.  (/)  Rule  the  double  % 
lines  from  the  sub-headline  to  the  base  border.  (^)  Rule  the  single  ^ 
lines  from  the  headline  to  the  base  border,  giving  about  ^  inch  to  the 
cents'  column,     (Ji)  Rule  the  single  vertical  line  for  the  page  column. 

2.  Write  the  trial  balance  or  "face  of  the  ledger,"  using  the  first 
double  money  column  for  the  amounts. 

3.  Write  the  inventories  in  the  inventory  column,  and  extend  each 
one  to  the  proper  financial  column. 

4.  Extend  the  amount  of  cash  on  hand  to  the  resource  column. 

5.  Extend  the  amounts  due  the  concern  on  personal  accounts  to  the 
resource  column. 

6.  Extend  the  amounts  due  others  on  personal  accounts  to  the  lia- 
bility column. 

7.  Extend  the  gains  in  the  business  accounts  to  the  gain  column,  and 
the  losses  to  the  loss  column. 

8.  Ascertain  the  net  gain  or  the  net  loss,  and  write  the  amount  in 
red  ink  in  the  loss  column  if  it  be  a  gain,  or  in  the  gain  column  if  it  be  a 
loss. 

9.  Write  the  equal  footings  of  the  business  accounts  columns  on  the 
proper  line. 

10.  Ascertain  the  standing  of  the  concern  and  write  the  amount  in 
red  ink  in  the  liability  column  if  it  be  a  net  capital,  or  in  the  resource 
column  if  it  be  a  net  insolvency. 

11.  Write  the  equal  footings  of  the  financial  columns  on  the  proper 
line. 

12.  Rule  a  single  line  above  the  footings  and  a  double  line  below. 


FIRST  SET 


95 


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APPLICATION  OF  PRINCIPLES 


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SECOND  SET 


97 


Second  Set.  —  Th.  E.  Student,  Sole  Proprietor 

The  Object  of  this  Set  is  to  furnish  material  for  additional  practice 
in  making  daybook  records,  journalizing,  posting,  taking  trial  balances, 
making  statements,  ledger  closing,  and  preparing  balance  sheets. 

Characteristics.  —  Continuing  business  with  a  net  capital  consisting  of  various  kinds 
of  resources  and  liabilities;  buying  and  selling  several  kinds  of  merchandise,  for  cash 
and  on  credit;  receiving  and  paying  cash  on  account;  realizing  a  gain  and  closing 
with  a  net  capital. 

Books  Used.  —  Practice  ledger  (for  preparatory  work) ;  daybook,  journal,  and  ledger 
as  principal  books ;  and  cash  book,  receipt  book,  and  check  book  as  auxiliary  books. 

Business  Forms  Used.  —  Bills  of  parcels,  receipts,  checks,  inventories,  business  state- 
ments, financial  statements,  and  balance  sheets. 

Place  of  Business.  —  The  same  as  adopted  in  the  first  set,  the  student  using  his  own 
name  as  proprietor  of  the  business. 

Ledger  Titles  and  Number  of  Lines  Each  will  require.  —  Th.  E.  Student,  11 ;  Benjamin 
Butler,  9 ;  Edward  Everett,  7  ;  David  Dodge,  7  ;  Cash,  30 ;  AarOn  Austin,  4 ;  Flour,  \'6 ; 
Mess  Beef,  12;  Henry  Hunt,  9;  Homeville  Bank,  17  ;  Apples,  10;  Gray  &  Co.,  8;  Prime 
Pork,  11;  Frederic  Ford,  6;  Insurance,  10;  Real  Estate,  Union  St.,  7;  Expense,  10; 
Ingless  &  Co.,  7;  Real  Estate,  Brown  Co.,  4;  Lewis  Lathrop,  4;  John  Jenkins,  6;  Loss 
and  Gain,  13 ;  Balance,  14. 

Price  Lists.  —  The  student  will  continue  to  use  the  same  price  lists  for  buying  and 
selling  as  were  assigned  to  him  in  the  first  set. 

Buying  Price  Lists 


Articles  Bought 

Per 

1 

2 

3 

4 

5 

6 

Flour,  Superfine, 

bbl. 

5 

50 

5 

55 

5 

60 

5 

65 

5 

70 

5 

75 

"      Minnehaha, 

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6 

85 

6 

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6 

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7 

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05 

7 

10 

Mess  Beef, 

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12 

25 

12 

30 

12 

35 

12 

40 

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45 

12 

50 

Prime  Pork, 

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13 

65 

13 

70 

13 

75 

Apples, 

« 

3 

20 

3 

25 

3 

30 

3 

35 

3 

40 

3 

45 

Selling  Price  Lists 


Articles  Sold 

Per 

1 

2 

3 

4 

5 

6 

Flour,  Superfine, 

bbl. 

6 

45 

6 

50 

6 

55 

6  60 

6 

65 

6 

70 

"      Minnehaha, 

« 

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80 

7 

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7 

90 

7 

95 

8 

8 

05 

Mess  Beef, 

« 

13 

65 

13 

70 

13 

75 

13 

80 

13 

85 

13 

90 

Prime  Pork, 

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15 

15 

05 

15 

10 

15 

15 

15 

20 

Apples, 

(( 

3 

70 

3 

75 

3 

80 

3  85 

3901 

3 

95 

Preparing  Price  List.  —  The  student  should  make  a  copy  of  the  lists  assigned  to  him 
in  the  form  shown  on  page  61. 


98  APPLICATION  OF  PRINCIPLES 


GENERAL  DIRECTIONS  FOR  WORKING  SECOND  SET 

First  Working.  —  1.   Make  out  all  bills  of  parcels  to  Feb.  15.     See  pages  66  and  67. 

2.  Write  in  the  receipt  book  all  receipts  given  out,  and  on  blanks  all  receipts  from 
other  parties.     See  pages  68  and  69. 

3.  Write  in  the  check  book  all  checks  issued,  and  on  blanks  all  checks  received 
from  other  parties.     See  pages  104  and  105. 

4.  Prepare  deposit  slips  and  write  the  bank  pass  book.     See  page  105. 

5.  Analyze  each  transaction  to  Feb.  15,  using  the  practice  ledger  in  which  to  record 
the  work ;  and  take  a  trial  balance  of  the  practice  ledger.     See  page  64. 

6.  Prepare  an  inventory  of  unsold  property.     See  i)age  100. 

7.  Prepare  the  business  statement  and  the  financial  statement.     See  page  101. 
Second  Working.  —  1.   Record  all  transactions  to  Feb.  15  in  the  day  book,  and  all 

cash  transactions  in  the  cash  book,  writing  the  day  book  entry  first  in  each  case.    Balance 
the  cash  book  Feb.  6  and  Feb.  14.     See  pages  102,  78,  and  79. 

2.  Write  the  journal  to  Feb.  15,  and  rule  the  pages. 

3.  Post  to  the  ledger  all  journal  entries  to  Feb.  15. 

4.  Take  a  trial  balance. 

5.  Close  the  ledger  in  current  form,  and  rule  the  ledger. 

6.  Prepare  a  balance  sheef  of  the  business  to  Feb.  15. 

After  the  work  to  Feb.  15  has  been  inspected  and  approved  by  the  teacher,  the  trans- 
actions of  the  last  half  of  the  month  should  be  written  up  in  the  same  way,  except  that 
the  ledger  should  be  closed  in  the  full  or  final  form. 

MEMORANDA   OF   TRANSACTIONS 

Homeville,  Thursday,  Feb.  1,  19 — .  Opened  a  new  set  of  books  with  the  following 
resources  and  liabilities,  taken  from  my  balance  sheet : 

Resources :  Cash  on  hand,  ^  ?  ;  claim  against  Benjamin  Butler,  ^  ?  ;  claim  against 
David  Dodge,  $  ?  ;  claim  against  Edward  Everett,  ^  ?  ;  flour  on  hand,  per  inventory,  $  ?  ; 
mess  beef  on  hand,  per  inventory,  ^  ?  ;  prime  pork  on  hand,  per  inventory,  ^  ?  ;  coal  on 
hand,  per  inventory,  f  ?  ;  unexpired  rent,  $  ?  ;  total,  ^  ?  . 

Liabilities :  Aaron  Austin's  claim  against  me,  %  ?  ;  Frederic  Ford's  claim  against 
me,  $?;  total,  |  ?  . 

Note  I. — The  items  given  in  the  foregoing  statement  of  resources  and  liabilities  are  taken 
from  the  balance  sheet  of  the  first  set,  Jan.  31,  19—.  The  pupil  will  use  the  corresponding  items  of 
his  balance  sheet,  and  should  be  careful  to  use  the  same  price  lists  for  buying  and  for  selling  which 
he  used  in  the  January  business. 

Note  2. — The  pupil  will  write  the  cash  entries  involved  in  each  transaction  in  the  cash  book 
before  recording  a  subsequent  transaction  in  the  day  book. 

Note  3.  —  In  opening  the  new  journal  make  each  resource  Dr.  for  its  proper  amount,  and  the 
proprietor,  Th.  E.  Student,  Cr.  for  the  sum  of  the  resources  invested.  Make  Th.  E.  Student  Dr. 
for  the  sum  of  the  liabilities,  and  each  liability  Cr.  for  its  proper  amount. 

Note  4. — The  first  two  journal  entries  could  have  been  combined,  forming  one  entry,  by 
making  each  resource  Dr.  for  its  respective  amount,  each  of  the  liabilities  Cr.  for  its  respective 
amount,  and  Th.  E.  Student  Cr.  for  the  difference  between  the  sum  of  the  resources  and  the  sum  of 
the  liabilities.  The  net  capital  of  the  business  would  then  appear  in  one  amount,  opposite  the 
proprietor's  name.     The  author  favors  the  form  given  in  the  illustration.     See  page  103. 

I  Feb.  1.   Opened  an  account  with  the  Homeville  Bank  and  deposited  ^1600  cash. 
See  journal  entry,  page  103. 

Feb.  1.  Insured  my  stock  of  Mdse.  for  .|500  at  a  premium  of  2%,  |  ?  ;  policy,  $1; 
total,  f  ?  ;  paid  for  the  same  per  check,  favor  Gale  &  Rust,  insurance  agents. 


SECOyi)   SET  99 

Note.  — It  has  cost  the  business  $11  for  insuring?  Mdse.  Insurauce  is  Dr.  for  the  cost,  and 
Homeville  Bank  is  Cr,  for  the  check  drawn  in  payment.     See  journal,  page  103. 

Feb.  2.  Received  from  the  executor  of  iiiy  deceased  father's  estate,  a  deed  of  lot  No. 
86  Union  St.  and  a  ;3-story  store  thereon,  and  invested  the  same  in  the  business ;  value, 
$7500. 

Note.  —  As  the  proprietor  invests  this  property  in  the  business,  it  is  entered  as  a  resource  by 
making  Real  Estate  account  Dr.  for  its  estimated  value ;  the  proprietor's  account  is  Cr.  for  the 
additional  investment.     See  journal,  page  103. 

Feb.  2.  Procured  insurance  in  the  Germania  Fire  Ins.  Co.  for  $5000  on  my  3-story 
store,  No.  8(3  Union  St.,  for  one  year,  at  1^%  premium,  $  ?  ;  policy,  $1 ;  premium  and 
policy  paid  for  per  check,  $  ?  ,  favor  Gale  &  Rust. 

Feb.  2.   Received  David  Dodge's  check  on  Park  Bank  for  $50,  on  account. 

Note.  —  Cash  is  Dr.  for  the  face  value  of  another  person's  check  received  and  held  by  us  ; 
David  Dodge  is  Cr.  , 

Feb.  3.    Paid  Frederic  Ford  $150  on  account,  per  check. 

Feb.  5.  Received  from  Benjamin  Butler  $50,  to  apply  on  account,  per  check  on 
Fidelity  Bank. 

Feb.  5.  Bought  of  Gray  &  Co.  75  bbls.  Michigan  apples  at  $  ?  ;  gave  them  in  part 
payment  my  check  for  $100 ;  balance  on  account. 

Feb.  6.   Paid  Aaron  Austin  $  ?  in  full  of  account,  per  check. 

Feb.  6.  Sold  Henry  Hunt  3  bbls.  Minnehaha  flour,  at  $  ?  ;  4  bbls.  mess  beef,  at  $  ?  ; 
total,  $  ?  ;  received  his  check  on  Park  Bank  for  $25 ;  balance  on  account. 

Feb.  6.  Deposited  all  checks  on  hand  in  the  Homeville  Bank.  Dodge's  check,  $  ?  ; 
Butler's  check,  $  ?  ;  Hunt's  check,  .$  ?  ;  total,  $  ?  . 

Note.  —  These  checks  having  been  considered  as  cash,  Homeville  Bank  becomes  Dr.  for 
amount  deposited,  and  cash  Cr.  for  the  same.  The  checks  are  indorsed  by  the  proprietor,  Th.  E. 
Student,  before  they  are  received  by  the  bank  as  a  deposit.  The  indorsement  on  the  back  of  the 
checks  is  evidence  of  the  transfer  of  ownership.  See  page  125.  To  avoid  multiplicity  of  entries  in 
this  work,  deposits  are  made  once  a  week ;  but  in  actual  business  every  check  should  be  deposited 
the  day  it  is  received,  or  the  following  day. 

Feb.  7.  Received  check  on  Traders'  Bank  for  $75,  to  apply  on  account  of  Edward 
Everett. 

Feb.  7.  Sold  Ingless  &  Co.  3  bbls.  superfine  flour,  at  $  ?  ;  4  bbls.  mess  beef,  at  $  ?  ; 
total,  $  ?  ;  received  their  check  on  Traders'  Bank  for  $25  in  part  payment ;  balance,  $  ?  , 
on  account. 

Feb.  8.   Received  David  Dodge's  check  on  Park  Bank  for  $  ?  ,  in  full  of  account. 

Feb.  0.   Received  Edward  Everett's  check  for  $  ?  ,  in  full  of  account. 

Feb.  9.  Bought  of  John  Jenkins  5  acres  of  land  at  Elba,  Brown  Co.,  at  $65,  $  ? ; 
paid  him  per  certified  check,  as  "  earnest  money,"  $25 ;  balance  to  be  paid  on  receipt  of 
deed. 

Note.  — "Earnest  money  '*'  is  money  paid  by  the  buyer  to  the  seller  as  a  token  or  pledge  "  to 
bind  the  bargain  "  and  "  prove  the  ^ale."    It  is  a  part  payment  of  the  price. 

Note.  — A  "certified  "  check  is  one  which  bears  on  its  face  an  indorsement  made  by  an  officer 
of  the  bank  upon  which  the  cheek  is  drawn,  stating  or  certifying  that  it  is  "  Good."^  This  cer- 
tification signed  by  the  officer  of  the  bank  assures  the  holder  of  the  check  that  a  sufficient 
amount  of  the  depositor's  funds  will  be  retained  in  the  bank  to  pay  the  check  when  it  is  presented. 

Feb.  10.   Paid  Frederic  Ford  $  ?  per  check,  in  full  of  account. 

Feb.  10.  Sold  Henry  Hunt  2  bbls.  Minnehaha  flour,  at  $  ?  ;  3  bbls.  mess  beef,  at  $  ? ; 
total,  $  ?  ;  received  his  check  on  Park  Bank  for  $30 ;  balance  on  account,  $  ?  . 

Feb.  12#  Received  Benjamin  Butler's  check  for  $  ?  on  Fidelity  Bank,  in  full  of  his 
account. 


100 


APPLICATION  OF  PRINCIPLES 


Feb.  12,    Paid  sundry  expenses  in  cash,  $5.87. 

Feb.  13.    Received  cash  of  S.  A.  Reed,  in  full  for  desk  room  in  office  to  Feb.  15,  $3. 
Feb.  14.    Sold  Benjamin  Butler  2  bbls.  prime  pork,  at  §  ?  ;  received  his  check  on 
State  Bank  for  ^  15  in  part  payment ;  balance,  $  ?  ,  on  account. 

Feb.  14.   Deposited  all  checks  on  hand  in  Homeville  Bank,  ^  ?  . 

Note.  —  At  this  point  close  the  ledger,  current  form;   make  out  inventory,  business  state- 
ment, financial  statement,  and  balance  sheet,  and  submit  your  work  to  the  teacher  for  approval. 


? 
9 

? 
? 

7      ''       S'vi.7yL&  <^aik                                "         f   ? 

? 

76  /.    a^^te^y  muk.             /r     /  9> 

^Xa'i&  V^  Lot,  8o^rLU>'yv  oft.       S^v&a^&nt  v-atu& 

? 
7600 

6  a^v&Q.,  ^tiM^fsfSvow-Ti  ^a.                               $65 

326 

? 
9 

r 

/O 

6^ 

//■^I^       ''                  "             '/    fSwUduyuf 

7S 

83 

83 

37 
02 

8373 

Footing  of  Trial  Balance,  Feb.  14,  19 — 

Listl                          2                          3                          4                           5  6 

$14013.22           $14126.02           $14238.82           $14351.62           $14464.42  $14577.22 

Cash  on  Hand,  Feb.  14,  19 — 

Listl                          2                          3                          4                           5  6 

$114.08               $109.48              $104.88              $100.28                $95.68  $91.08 

Cash  on  Deposit  in  Bank,  Feb.  14,  19 — 

Listl                         2                          3                          4.5  6 

$1079.05             $1081.60            $1084.15             $1086.70            $1089.25  $1091.80 

Footing  of  the  Day  Book  and  Journal,  Feb.  14,  19 — 

Listl                          2                          3                           4                           5  6 

$15316.27           $15501.92           $15687.57           $15873.22           $16058.87  $16242.52 


Inventory,  Feb.  14,  19 — 

Listl  2  3  4  5  6 

$8373.02  $8377.77  $8382.52  $8387.27  $8392.02  $8396.77 


SECOND   SET 


101 


Business  Statement,  Feb.  14,  19 — .    List  i 


Losses. 

Gain.v 

. 

Flour 

Proceeds  from  Sales 
Value  of  Unsold 

Total  Proceeds 
Cost 

Gain 

$58.35 

65.90 

124.25 

116.65 

7 

60 

Mess  Beef 

Proceeds  from  Sales 
Value  of  Unsold 
Total  Proceeds 

$150.15 

? 

9 

Cost       • 
Gain 

? 

15 

40 

Prime  Pork 

Proceeds  from  Sales 

Value  of  Unsold     • 

Total  Proceeds 

$29.90 
? 

? 

Cost 
Gain 

? 

2 

9Q 

Insurance 

Outlay,  Cost 

$87. 

Value  Unused 
Loss 

83.37 

3 

63 

Expense 

Outlay,  Cost 

Returns                          $3.00 

Value  Unused                39.75 

$58.37 

Total  Returns 
Loss 

42.75 

15 

62 

Net  Gain 

6 

65 

25 

90 

25 

90 

Finan( 

nal  Statement,  Feb.  14,  19 — . 

List  I 

Resources. 

Liabilities. 

Flour 

On  hand,  per  Inventory 

65 

90 

Mess  Beef 

u               u                u 

24 

50 

Apples 

n               a               li 

240 

Piime  Pork 

li               li               ii 

94 

50 

Insurance 

Unused 

83 

37 

Expense 

((           li          ii 

39 

75 

Real  Estate,  Union  St. 

Present  Value 

7500 

"       Brown  Co. 

((           li 

325 

Cash 

Amount  on  hand 

114 

08 

Homeville  Bank 

"        "   deposit 

1079 

05 

Benjamin  Butler 

He  owes  me  on  account 

14 

90 

Henry  Hunt 

11           li          11 

79 

55 

Gray  &  Co. 

I  owe  them  on  account 

140 

John  Jenkins 

a        hjjn        u          u 

300 

Ingless  &  Co. 

They  owe  me         " 

48 

95 

Th.  E.  Student 

- 

Investment,  Feb.  1 
N^et  Gain,  as  above 
Net  Capital,  Feb.  14 

$9262.90 
6.65 

9269'55 

9709 

55 

9709|55 

'     1 

102 


AFFLIGATION  OF  PRINCIPLES 


Day  Book  Opened 


/.  /'/- 


RmxyuAA^Qy 


//  ft 


ft  ff 


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^hVyro&  S^o-t^    //      \      //  // 

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R&nt                  ''              '/  /' 


/  


, 2 


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at  'vyou  cL&&&aQy&cL  S^aXAeA^'o^  (^ataZ& 


Viu/it  af  ^ui^Y  ^  ^■ 

S'a^ici  tk&yi-v  an  6-111,  '^&h  ek&ek^ 
Scila'yL^&  a^^  cML^aiwit 


@      / 


/O 

/ 


/OO 
? 


// 


7-500 


SECOND   SET 


loa 


Journal  Opened 

/imjwvlttt,  3^huv^(iciy,  r:j^o6-iAiciii/'  / ,  /f. 


€d.  Sv-&v&CC 

? 
9 

? 
? 

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• 

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? 

^k.  €.  ^tudemt 

? 

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/ 

f'fovv&v-itle,  BamJo 

fSOO 

/600 

<JnQ^tLva/yi&& 

/lfaut&v-ill&  fdaruk^ 

// 

// 

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^7k.  €.  ^JtlldeA^t 

7600 

7600 

o        

a^^e.^ 

100 

^c^Jv 

26 

/if&'H'lA^  f'f'wnt 

S'ta^v 

? 

f 

TTie^  B^ 

? 

104 


APPLICATION  OF  PRINCIPLES 


CHECK   BOOK   AND   ITS   AUXILIARIES 


A  Check  Book  is  a  book  of  blank  checks,  having  a  stub  or  margin  upon 
which  to  enter  the  details  of  date,  amount,  payee,  and  for  what  account 
the  checks  are  drawn. 


Payable  to  Order 


Check  Book 
Payable  to  Order 


1)1 


4 

ft 


1^ 


Ph   ^    &^    ^ 


Payable  to  Bearer 


r 


wo 


CO 

°     I 


i-s 


Q 


Ph    ^    &^ 


e 


^ 

^ 

>^ 

\^ 

0^ 

^ 

^ 

^ 

?^ 

K 

^ 

l^^ 

<o 

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^^ 

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^ 

^ 

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Oi 

1 

1 

1 

Ci 

1 

C5 

tH 

tH 

T— t 

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1 

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to 

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4 

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^ 

1 

Ti 

1 

1 

1 

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03        rrt 

0^ 

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§         ??          =^ 

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0) 

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^ 

^      ^' 

% 

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0 

c| 

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p- 

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c3 

o 

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o 

n^ 

cu 

a 

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(^ 

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OS 

0 

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M    P    O 

P 

H 

^ 

^ 

W 

p 

o 

P 

H 

^     I2; 

w 

P 

0 

P 

H 

^    )^ 

SECOND  SET 


105 


The  Bank  Account  is  usually  kept  on  the  stub  or  margin  by  entering 
thereon  the  sums  deposited,  and  deducting  the  sums  withdrawn. 

Checks  Payable  to  the  Order  of  the  Payee  must  be  indorsed  by  him 
before  payment  by  the  bank,  and  when  so  indorsed  and  returned  to  the 
drawer  they  become  vouchers  against  the  payee. 


Stub  or  Margin 


Deposit  Book 


Ticket  (to  be  detached) 


Deposited  by 

^L  €.  Miidtnt 

in  the 

fgomebtlle  Bank 

HoMEviLLE,  (state),  <^£A.  6,  19 — 

Currency 

Gold 

Silver 

Checks : 

^dv-id  cbaci(^& 

60 

fSem/j.  £utt&v 

60 

/ife/yuiAf  /lfu^^t 

£6 

1^6 

Deposited  by 

3^/b,  'S.  ^tud&9tt 

in  the 

?^omebille  3Sanfe 

HoMEviLLE,  (state),  c^&lf-.  6,  19 — 

Cm-rency 

Gold 

Silver 

Checks : 

jba.v~icL  jbo-cLcf& 

60 

Be/yif.  ButteAy 

60 

/if&nAA^  /ifii'nC 

26 

126 

Bank  Pass  Book 

(Left-hand  page) 

(Right-hand  page) 

Dr.       HoMEviLLE  Bank  in  Account 

with          3^k.  €.  ^tud&nt            Cr.  ^ 

/ 

CL.  B.   (Teller's  initials) 

/600 

fCf— 

/^ 

^k&^JU'  v&twvyi&d 

// 

0 

a.  IS. 

/26 

///         f76 

// 

/^ 

^/f 

66 

160            /OO 
20^             26 
^(^^.60 

/066 

60 

Bata/n/R^ 

Feh. 

u 

Balance 

1079 

05 

2/^^ 

66 

2/^^ 

66 

^eA. 

/6 

f07^ 

06 

c^^^. 

28 

ff 

23 

r^.A 

1306 

f200        f/60 

// 

28 

r.^. 

773 

60 

/^O 

HO 

Ba.ta,'yL&>& 

Feb. 

28 

Balance 

2667 

55 

3/67 

66 

3/67 

66 

mat. 

/ 

2667 

66 

106 


APPLICATION  OF  PRINCIPLES 


Balance  Sheet,  List  i 


I 

I 


^ 


^ 

^ 


^:i  ^  ^  ^  ^  'o 
'^  ^  ^  k^  'o  ^ 


^5  ^        K  ^ 


5:i.   ^   'O   i:ix  'v:ss  "^  ^ 
-^   ^  \i   ^   K  K  ^ 


^  '>5   ^   '^  ^   'o 
^  oq  y:^  ^  ^  ^ 


^ 

^ 

^ 


^ 

^ 

^ 


^ 
^ 


1^ 


tv  »o 


'^'i 


\i 


^ 
^ 


^ 


*:o 


iQ 


ij 


^ 


^ 


^  ^ 
'v^-  ^ 


^5  ^ 


^  ^   ^   ^ 
^  ^   Si   ^ 


^ 
^ 


Vi 


^   ^ 
^  ^ 


03   5^  ^^  Vi   ^-  ^  ^  ^ 

Oq        ^  ^  ^       ^  ^ 


K  ^   Oq   Oq    U-, 

^  j^  '^^  ^  ^ 


^ 


^ 


^ 


'b 


^  ^ 


tvK^^^^^^ 


^::b    ^   ^   ^   "^M   "^ 
^    ^   ^   ^    ^^   ^ 


^ 


^1 


4 
■^ -ni  Qc  ^  "^ '^  =1 


SECOND  SET 


107 


SECOND   SET.  —  MEMORANDA  OF   TRANSACTIONS,    Continued 

Homeville,  Thursday,  Feb.  15.  Bought  of  Gray  &  Co.  20  bbls.  prime  pork,  at  $  ?  ; 
15  bbls.  mess  beef,  at  $  ?  ;  total,  f  ?  ;  gave  in  part  payment  my  check  for  ^200 ;  balance, 
t*$  ?  ,  to  remain  on  account. 

Feb.  16.  Bought  of  John  Jenkins  20  bbls.  superfine  flour,  at  $  ?  ;  20  bbls.  Minne- 
haha flour,  at  $  ?  ;  total,  ^  V  ;  gave  in  part  payment  my  check  for  $150 ;  balance,  $  ?  ,  on 
account. 

Feb.  10.  Sold  Benjamin  Butler  15  bbls.  Michigan  apples,  at  .|  ?  ;  received  his  check 
on  Fidelity  Bank  for  -130;  balance,  $  ?  ,  on  account. 

Feb.  17.  Paid  Charles  Fuller's  bill  for  repairs  on  building,  No.  86  Union  St.,  in 
cash,  $35.25. 

Feb.  17.  Sold  Ingless  &  Co.  6  bbls.  prime  pork,  at  $  ?  ;  5  bbls.  Minnehaha  flour,  at 
$  ?  ;  total,  $  ?  ;  received  in  part  payment  their  cl^eck  on  Traders'  Bank  for  $75;  bal- 
ance on  account. 

Feb.  19.   Paid  Gray  &  Co.  $  ?  ,  per  check,  for  balance  of  bill  of  the  5th  inst. 

Feb.  20.  Received  $50,  per  check  on  Park  Bank,  of  Henry  Hunt,  to  apply  on  his 
account. 

Feb.  21.  Sold  David  Dodge  15  bbls.  superfine  flour,  at  $  ?  ;  5  bbls.  mess  beef,  at 
$  ?  ;  total,  $  ?  ;  received  in  part  payment  his  check  on  Park  Bank  for  $  50 ;  balance,  $  ?  , 
on  account. 

Feb.  23.  Received  of  Ralph  Gale  $50,  for  rent  of  store,  No.  86  Union  St.,  to  Mar.  1, 
19 — ,  per  check  on  State  Bank. 

Feb.  23.  Sold  Ingless  &  Co.  7  bbls.  prime  pork,  at  $  ?  ;  15  bbls.  Michigan  apples,  at 
$  ?  ;  total,  $  ?  ;  received  in  part  payment  their  check  for  $50;  balance  on  account. 

Feb.  23.  Received  from  the  executor  of  my  deceased  father's  estate,  $1000,  per  check 
on  Homeville  Bank,  as  a  final  payment,  and  invested  the  same  in  the  business. 

Feb.  23.   Deposited  all  checks  on  hand  in  the  Homeville  Bank,  $  ?  . 

Feb.  24.  Sold  Edward  Everett  3  bbls.  prime  pork,  at  $  ?  ;  4  bbls.  Michigan  apples, 
at  $  ?  ;  total,  $  V  ;  received,  per  check,  $40  in  part  payment;  balance,  $  ?  ,  on  account. 

Feb.  24.   Received  of  Henry  Hunt  $  ?  ,  per  check,  in  full  of  account. 

Feb.  26.  Sold  Lewis  Lathrop  3  bbls.  mess  beef,  at  $  ?  ;  6  bbls.  Michigan  apples,  at 
$  ?  ;  total,  $  ?  ;  received,  per  check,  $25  in  part  payment;  balance,  $  ?  ,  on  account. 

Feb.  26.  Sold  Henry  Hahn,  for  cash,  12  bbls.  JSIichigan  apples,  at  $  ?  ;  4  bbls.  super- 
fine flour,  at  $  ?  ;  total,  $  ?  ;  received  his  check  on  Homeville  Bank  for  the  amount. 

Feb.  28.  Sold  for  cash  my  entire  stock  of  Mdse.  to  James  B.  Hudson,  including  fuel 
on  hand,  rent,  and  insurance,  as  follows:  8  bbls.  superfine  flour,  at  $  ?  ;  19  bbls.  Minne- 
haha flour,  at  $  ?  ;  9  bbls.  mess  beef,  at  $  ?  ;  11  bbls.  prime  pork,  at  $  ?  ;  23  bbls.  Michi- 
gan apples,  at  $  ?  ;  1  ton  coal,  $6.50 ;  1  month's  rent,  $20 ;  11  months'  prepaid  insurance 
on  Mdse.,  estimated  value  $10.08 ;  total,  $  ?  ;  received  his  check  on  the  Homeville  Bank 
for  the  amount,  $  ?  . 

Feb.  28.   Deposited  all  checks  on  hand  in  Homeville  Bank,  $  ?  . 


J^yvutTbtmAf  of  <^iMp&ity  en  fici'rut,  rS^tl}-.  28,  /f . 


Real  €Qtat&,  ^to-v&  V^  Lat,  cAo.  861Am,uyn>  oft. 

7750 

//           //    6  a^ve^jCa/Kctvn^  S^t6-a',B'uyiv^yL  ^0-.  @ 

65 

S25 

, 

JnQAiu^'kKe^&,  //  "yKo-ntk^,  an,  ^tav& 

6^ 

67 

108 


APPLICATION  OF  PRINCIPLES 


Footing  of  Trial  Balance,  Feb.  28,  19- 


Listl 
$15025.21 

2 

$  15049.86 

3                          4 

$15074.51           $15099.16 

Cash  on  Hand,  Feb.  28,  ig— 

5 

$15123.81 

6 

$15148.46 

Listl 

$  103.83 

2 

$99.23 

3                           4 

$  94.63                 $  90.03 

Cash  in  Bank,  Feb.  28,  19— 

5 

$85.43 

6 

$80.83 

Listl 
$2667.58 

2 

$2671.28 

3                            4 

$2674.98             $2678.68 

5 

$2682.38 

6 

$2686.08 

Footing  of 

the  Day  Book  and  Journal,  Feb. 

28,  19— 

Listl 
$5395.21 

2 

$5416.71 

3                           4 

$5438.21             $5459.71 

5 

$5481.21 

6 

$5502.71 

S^Ual  ISd^ariM.,  Stly.  28,  /^_ 

- 

£voit  / 

S'a.€^&   aj^   L&cLcft'V 

Hjne^n   Ci^(^itnLiy 

^. 

Sata 

.n&ta^ 

1026^ 

55 

3~/h.  €.  QjUtcL&nt,  S'ho^vC&to-v 

7 

/026(^ 

55 

^0 

^0 

B&njciyyv\yyi  Bwtt&v 

7 

^0 

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65 

^clw-cfyVcL  Sv'&'httt 

7 

/9 

65 

//d 

^dv-icL  Jbo-cl^e 

7 

//5 

22/7 

6/ 

2//3 

78 

^a^/i 

8 

/03 

83 

3/2 

^0 

36/ 

35 

S^to-uv 

^ 

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¥■5 

208 

25 

232 

05 

me.Q^  £e.e{ 

^ 

23 

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3/ 07 

58 

HO 

/"fom.e,v-itt&  fSanh 

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2667 

58 

2^0 

277 

50 

a-'f^^m. 

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37 

50 

f^O 

3^3 

75 

^VCLJ  V  (^0-. 

/o 

253 

75 

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^03 

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39 

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83 

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73 

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7635 

25 

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7^85 

25 

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80 

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80 

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75 

26 

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S'X.^&Tidey 

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325 

397 

R&aZ  €atat&,  /Svo-ii^n  ^. 

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/2 

325 

397 

38 

/  5 

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2/ 

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2/ 

/  /O69 

20 

//069 

20 

SECTION   THREE 

BUSINESS  SETS   FOR   PRACTICE   IN  MODERN  BOOKKEEPING 
JOURNAL-DAYBOOK  AND   CASH-JOURNAL 


>J<Kc 


thp:  journal-daybook 

The  preceding  section  was  devoted  principally  to  the  exemplification 
of  the  day  book  and  the  journal  as  separate  and  distinct  books.  The 
student  was  shown  how  to  record  business  transactions  in  the  day  book, 
then  how  to  enter  them  in  the  journal  preparatory  to  posting  them  in  the 
ledger. 

Having  learned  the  character  of  a  day  book  record  and  what  constitutes 
a  journal  entry,  he  should  be  better  prepared  to  record  business  transactions 
intelligently  in  the  combined  day  book  and  journal  called  the  Journal- 
Daybook. 

The  Model  Journal-Daybook,  in  which  are  recorded  the  transactions 
of  the  next  two  weeks,  is  to  be  carefully  studied,  in  detail,  by  the  student, 
before  he  begins  to  write  up  the  work  in  the  blank  books.  He  should  see 
how  each  transaction  narrated  in  the  memoranda  is  entered  in  the  jour- 
nal-daybook ;  how  each  entry  is  arranged  to  show  not  only  the  fact  of 
the  transaction,  but  also  the  accounts  which  are  affected  by  it.  He  is 
expected  to  become  so  familiar  with  this  combined  form  of  entry  that  the 
instant  he  sees  or  hears  a  transaction  stated  he  will  know  how  it  should 
appear  in  the  journal-daybook. 

The  Model  Cash- Journal,  represented  in  the  seventh  and  eighth  sets,  is 
a  combination  of  the  day  book,  journal,  and  cash  book,  so  far  as  cash 
entries  are  concerned.  In  it  the  transactions  are  so  entered  that  they 
may  be  posted  directly  from  it  to  the  ledger.  It  may  be  used  for  any  of 
the  sets  if  the  teacher  so  desires. 

The  Student  is  not  to  Copy  the  model,  but  to  enter  the  transactions 
just  as  he  would  in  real  business,  making,  in  regular  order,  all  the  calcula- 
tions and  extensions,  writing  and  filing  all  the  vouchers,  posting  and 
closing  the  ledger  as  set  forth  in  the  directions  for  working  which 
follow. 

109 


110  PRACTICE   IN  MODERN  BOOKKEEPING 


Third  Set.  —  Th.  E.  Student,  Sole  Proprietor 

Object  of  the  Set.  —  The  principal  object  of  this  model  set  is  to  illus- 
trate the  use  of  the  journal-daybook  as  a  book  of  original  entry.  It  is 
also  for  the  purpose  of  giving  further  practice  in  the  use  of  the  ledger, 
cash  book,  receipt  book,  and  check  book,  and  in  making  business  forms. 

The  Stock  Record  Book,  introduced  in  this  set,  is  a  book  in  which  a 
special  record  is  kept  of  the  quantity  of  goods  purchased  and  the  quantity 
^old,  so  as  to  show  at  any  time  the  quantity  of  goods  on  hand.  When 
goods  are  purchased  the  date  and  the  amount  are  entered  on  the  Dr.  side 
of  the  account,  and  when  a  sale  is  made  the  date  and  the  amount  sold  are 
entered  on  the  Cr.  side.  The  excess  of  the  Dr.  side  should  show  the 
amount  of  stock  on  hand.     The  form  of  record  is  shown  on  page  113. 

Student  as  Proprietor.  —  The  student  will  be  the  proprietor  and  the 
bookkeeper  of  the  business,  will  write  up  the  transactions  in  his  own 
name,  and  make  all  the  calculations  and  extensions,  without  any  assistance 
other  than  that  given  him  by  the  teacher. 

Accuracy  and  Neatness.  — -  In  this  set  more  of  the  details  of  the  busi- 
ness represented  are  given,  the  object  being  to  insure  absolute  accuracy 
and  neatness,  and  an  intelligent  understanding  of  the  principles  underly- 
ing practical  bookkeeping. 

Characteristics.  —  Commencing  with  a  net  capital ;  buying"  and  selling  merchandise 
for  cash  and  on  credit;  receiving  and  paying  cash  on  account;  depositing  funds  in  a 
bank ;  issuing  and  receiving  checks ;  realizing  a  net  gain ;  and  closing  with  an  increased 
capital. 

Business  Forms  Used.  —  Bills  of  parcels,  receijjts,  deposit  tickets,  checks,  business 
statements,  financial  statements,  and  balance  sheets. 

Books  Used.  —  Journal-daybook  and  ledger  as  principal  books;  receipt  book,  check 
book,  bank  pass  book,  cash  book,  and  stock  record  book  as  auxiliary  books. 

Ledger  Titles  and  Number  of  Lines  Required.  —  Th.  E.  Student,  9;  Wheat,  17; 
Marion  Mead,  7  ;  Cash,  83  ;  Sugar,  20 ;  Corn,  12 ;  Knight  &  King,  12  ;  Leonard  Lyon,  13  ; 
Philip  Pond,  8 ;  Orrin  Olson,  12  ;  Nathan  Norton,  10 ;  Flour,  11 ;  Insurance,  9  ;  Oats,  12  ; 
Quinn  &  Co.,  12;  Ray  Russell,  12;  Molasses,  8;  Silas  Smith,  6;  Thomas  Tyler,  7: 
Expense,  9;  Loss  and  Gain,  16;  Homeville  Bank,  12;  Cash  (2d),  7;  Balance,  15. 

DIRECTIONS   FOR  WORKING 

1.  Make  out  incoming  and  outgoing  bills  of  parcels,  receipts,  and  checks  up  to 
March  15,  according  to  previous  directions,  and  properly  file  them. 

2.  Prepare  deposit  ticket  and  write  the  bank  pass  book. 

3.  Enter  in  the  stock  record,  each  day,  the  amount  of  goods  purchased  and  the 
amount  sold. 

4.  Record  in  the  journal-daybook  the  transactions  to  March  15,  and  in  the  cash 
book  all  cash  transactions,  closing  the  cash  book  on  the  3d,  10th,  and  15th  days  of  the 
month,  and  submit  your  work  to  the  teacher  for  inspection  and  approval. 


THIRD   SET 


111 


5.  Post  to  the  ledger  and  take  trial  balance. 

6.  Take  an  account  of  stock  on  hand  March  15,  and  prepare  the  business  statement 
and  the  financial  statement. 

7.  Close  the  ledger  in  current  form  and  make  the  balance  sheet. 

8.  Complete  the  work  of  the  month  in  the  same  manner,  closing  the  cash  book  on 
the  17th,  21:th,  and  31st  days  of  the  month,  and  closing  the  ledger  in  full  form. 


Buying  Price  Lists 


Articles  Bought 

Per 

1 

2 

3 

4 

5 

6 

Wheat  No.  1 

bus. 

55^ 

57^ 

59^ 

61)* 

63)* 

65)* 

11         u     2 

a 

50^ 

52^ 

54^ 

56)* 

58)* 

60)* 

Sugar  A 

lb. 

H^ 

D^ 

H^ 

h\f 

5|)* 

6)* 

"      B 

a 

3|^ 

Ar 

^\f 

H^ 

4f)* 

5)* 

Corn 

bus. 

45)* 

47  ;> 

49^ 

51)* 

53)* 

55)* 

Flour,  Extra 

bbl. 

4.50 

4.55 

4.60 

4.65 

4.70 

4.75 

Oats 

bus. 

35^ 

37^ 

39^ 

41)* 

43)* 

45)* 

Molasses 

gal. 

58^ 

mf 

62^ 

64)* 

66)* 

68)* 

Selling  Price  Lists 


Articles  Sold 

Per 

1 

2 

3 

4 

5 

6 

Wheat  No.  1 

bus. 

58)* 

60^ 

62)* 

64)^ 

66)* 

68)* 

u             u       2 

(( 

53)* 

55)* 

57)* 

59)* 

61)* 

63)* 

Sugar  A 

lb. 

5i)* 

6)* 

6J)* 

6^)* 

6|)* 

7)* 

"      B 

u 

4|)* 

5)* 

5tJ* 

5i)* 

5|)* 

6)* 

Corn 

bus. 

48)* 

50)* 

52)* 

54)* 

56)* 

58)* 

Flour,  Extra 

bbl. 

5.40 

5.45 

5.50 

5.55 

5.60 

5.65 

Oats 

bus. 

38)* 

40)* 

42)* 

44  0 

46)* 

48)* 

Molasses 

gal. 

67)* 

69)* 

71)* 

73)* 

75)* 

-77)* 

MEMORANDA  OF   TRANSACTIONS 


Homeville,  Thursday,  March  1,  19- 
^  2500  in  cash. 


I  commenced  business  this  day  and  invested 


Mar.  1. 

Mar.  2. 

Mar.  2. 
March  1. 

Mar.  3. 

Mar.  3. 

Mar.  5. 

Mar.  5. 
oats,  at  ?  )* ; 

Mar.  6. 


Bought  of  R.  G.  Kimball,  for  cash,  1000  bus.  No.  1  wheat,  at  ?  )*. 

Sold  D.  H.  Cochran,  for  cash,  250  bus.  No.  1  wheat,  at  ?  <*. 

Paid  George  W.  Plympton  cash  for  3  months'  rent  of  store,  at  '$30,  beginning 

Bought  of  Knight  &  King,  on  credit,  2000  bus.  No.  1  wheat,  at  ?  )*. 

Sold  Leonard  Lyon,  on  credit,  350  bus.  No.  1  wheat,  at  ?  )*. 

Bought  of  Marion  Mead,  on  credit,  50  bbls.  A  sugar,  12500  lb.,  at  ?)*. 

Bought  of  Nathan  Norton,  on  credit,   750  bus.   corn,   at  ?  )* ;   2000  bus. 

total,  I  ?  . 

Sold  Orrin  Olson,  on  credit,  400  bus.  No.  1.  wheat,  at  ?)*;  20  l)l)ls.  A  sugar, 


5000  lb.,  at  ?)* ;  total,  ^  ?  . 


112  PRACTICE   IN  MODERN  BOOKKEEPING 

Mar.  6.  Insured  my  stock  of  merchandise  in  the  York  Insurance  Co.,  through 
Kinsley  &  Co.,  their  agents,  for  $3000,  at  2i  %  premium,  $  ?  ;  paid  cash,  $  ?  ;  policy 
dated  Mar.  1,  19— . 

Mar.  7.  Bought  of  George  Piatt,  for  cash,  150  bbls.  extra  flour,  at  -$  ?  ;  900  bus. 
No.  2  wheat,  at  ?  J? ;  total,  $  ?  . 

Mar.  7.  Sold  Charles  Ovenshire,  for  cash,  250  bus.  corn,  at  ?^;  300  bus.  oats,  at 
?  ^ ;  total,  §  ?  . 

Mar.  7.   Received  ^  100  cash,  of  Leonard  Lyon,  to  apply  on  account. 

Mar.  8.   Paid  Knight  &  King  $  500  cash,  to  apply  on  account. 

Mar.  8.  Bought  of  Philip  Pond  900  bus.  No.  2  wheat,  at  ?  ^ ;  600  bus.  corn,  at  ?  ^ . 
total,  $  ?  ;  paid  him  ^  350  cash,  to  apply  on  the  bill. 

Mar.  9.  Sold  Quinn  &  Co.  500  bus.  oats,  at  ?^;  10  bbls.  A  sugar,  2500  lb.,  at  ?)>; 
total,  $  ?  ;  received  cash,  $  175,  to  apply  on  bill. 

Mar.  10.   Paid  James  Brown  cash  for  sei-vices  as  clerk,  $  22.50. 

Mar.  10.   Received  $  300,  in  cash,  to  apply  on  account  of  Orrin  Olson. 

Mar.  10.  Bought  of  Marion  Mead  75  bbls.  A  sugar,  18750  lb.,  at  ?  ^ ;  40  bbls.  B 
sugar,  10000  lb.,  at  ?  ^ ;  total,  $  ?  ;  paid  him  $  400  cash,  to  apply  on  the  bill. 

Mar.  10.  Sold  Leonard  Lyon  20  bbls.  extra  flour,  at  $  ?  ;  1500  bus.  No.  2  wheat,  at 
?  ^  ;  300  bus.  corn,  at  ?  ^ ;  total, \$  ?  ;  received  $  500  cash,  to  apply  on  bill. 

Mar.  12.  Sold  Orrin  Ols^200  bus.  oats,  at?^;  50  bbls.  extra  flour,  at  $  ?  ;  total, 
$  ?  ;  received  $  200,  in  cash,  ts  apply  on  bill. 

Mar.  12.  Bought  of  Knight  &  King  1500  bus.  No.  1  wheat,  at  ?^;  2000  bus.  No.  2 
wheat,  at  ?  ^ ;  500  bus.  corn,  afi  f;  total,  $  ?  ;  paid  them  cash,  $  500,  to  apply  on  bill. 

Mar.  13.   Paid  Philip  Pond  $250,  in  cash,  to  apply  on  account. 

Mar.  13.   Received  $  150,  in  cash,  to  apply  on  account  of  Orrin  Olson. 

Mar.  13.  Sold  D.  H.  Cochran,  for  cash,  1250  bus.  No.  1  wheat,  at  ?  ;!> ;  350  bus. 
corn,  at  ?;* ;  500  bus.  oats,  at  ?  f ;  total,  $  ?  . 

Mar.  14.   Paid  Knight  &  King  $  450,  in  cash,  to  apply  on  account. 

Mar.  14.  Sold  Quinn  &  Co.  100  bus.  corn,  at  ?)*;  50  bbls.  extra  flour,  at  $  ?  ;  total, 
$  ?  ;  received  $  200,  in  cash,  to  apply  on  bill. 

Mar.  14.  Sold  Orrin  Olson  30  bbls.  A  sugar,  7500  lb.,  at  ?  ^  ;  10  bbls.  B  sugar, 
2500  lb.,  at  ?  j^' ;  total,  $  ?  ;  received  $  350,  in  cash,  to  apply  on  bill. 

Mar.  15.  Sold  Ray  Russell  20  bbls.  A  sugar,  5000  lb.,  at  ?  ^  ;  20  bbls.  B  sugar, 
5000  lb.,  at  ?  ;»  ;  total,  $  ?  ;  received  $325,  in  cash,  to  apply  on  bill. 

Mar.  15.    Paid  Knight  &  King  $500  cash,  to  apply  on  account. 

Mar.  15.   Paid  Nathan  Norton  $  600  cash,  to  apply  on  account. 

General  Results,  March  15,  19 — 


Footings  of  Trial  Balance 

Listl 
$22283.63 

2 

$22837.00 

3                            4 

$23390.38          $23943.75 

Cash  on  Hand 

5 

$24497.13 

6 

$25050.50 

List    1 
$849.50 

2 

$862.00 

3                         4 

$874.50              $887.00 

Total  Inventory 

5 

$  899.50 

6 

$912.00 

List  1 
$  3855.01 

2 

$4008.88 

3                           4 

$4162.76            $4316.63 

5 

$4470.51 

6 

$4624.38 

THIRD   SET 


113 


Stock  Record 

cAa.  /  iV/uat 


mav. 

/ 

fOOOiy.UA.. 

9 

mav. 

2 

260  6.ti^. 

9 

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d 

2000 

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1500             ^600 

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6 
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? 

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J^a.  2  Wvmt 

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7 

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1600  6-u^. 

? 

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8 

qoo 

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// 

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2000             3800 

(L  ^"Viaciv 

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6 

12600  l{y-. 

? 

nuv. 

6 

6000  U-. 

F 

// 

10 

/8760          3/260 

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2600 
7600 
6000 

20000 

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? 

B  ^Uyadv 

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6000 

7600 

(P.ahiiy 

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nuv. 

r 

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? 

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600 

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300 

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600             /860 

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max.. 

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114 


PRACTICE  IN  MODERN  BOOKKEEPING 


Journal-Daybook 


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^00  {>^UQ..  oAa.  /  68  (f^ 

20  {^{^U.  (Z,  6000  [{>..       ^y  i 

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$8000  a^  ?ncU&.       2  y^  % 


2600 


660 


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208 


6^8 


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700 


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76 


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76 


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60 


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76 


THIRD  SET 


115 


Journal-Daybook,  Continued 


7,  /f- 


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116 


PRACTICE  IN  MODERN  BOOKKEEPING 


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63 

THIRD  SSET 


11' 


Journal-Daybook,   Continued 


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118 


PRACTICE  IN  MODERN  BOOKKEEPING 


Jruv-tntawf  af  llw9.atcL  <^hapbvt^^,  7?l(iv(^fb  Id,  /f . 


2^60  (yu^.  cAa.  /  IMi&at  (e^aoX)        ?  ^ 

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860  {yu^.  ^xywyi  //  ?  ^ 

600     //       (Halo.  //  ?  ^ 

SO  (yi^l^.  SocLam^  (S^tcnov  ff  /  ? 

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f f^l^     ''        c^noAiyvam^s^,  //  //  6.26 


76 
7/ 


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0  / 


ff^iylat  fSoLci'M^b,  7)\(iv(^ky  /5,  /f — .      Ll'ot  I 


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.to. 


a.U^'K<2.&^ 


63 


^k.   0.   ofCiC'cCs/yit 


63 


fOyvVcfkt  V  /CivL^ 

€hViy'}^  iltoxyn 
cAatkoun  cAaxX/yyi 
Sto-UA. 

HcLtOy 

^u.l/r.71  V  ^. 

€(mAtU>AAAiA7L 


/^ 
/^ 

f6 
/6 
/6\ 
f7 
f7 
/7 
/8 
/8 
/8 
/9 
/9 
/9 
20 
2/ 


2276 


363 

362 

660 
^/6 


76 
130 


f  /2 


67/6 


60 
/3 

60 


60 


76\ 
60 


88 


2600 
l^6(^ 

/200 
/20 
^37 


67/6 


38 


60 


88 


MEMORANDA   OF   TRANSACTIONS,    Continued 

Homeville,  Friday,  March  16,  19 — .  Opened  an  account  with  the  Homeville  Bank, 
and  deposited  $  750  in  cash. 

Mar.  16.  Bought  of  Silas  Smith,  on  credit,  50  bbls.  A  sugar,  12500  lb.,  at  ?  f  ;  6500 
gal.  N.  O.  molasses,  afi  f  ;  total,  $  ?  . 


THIRD   SET  119 

t 

Mar.  16.  Sold  Ray  Russell,  on  credit,  350  bus.  No.  1  wheat,  at  ?  ^  ;  650  gal.  N.  O. 
molasses,  at  ?  jz^  ;  total,  ^  ?  . 

Mar.  17.  Sold  Amos  Kellogg,  for  cash,  25  bbls.  A  sugar,  6250  lb.,  at  ?  ;*  ;  10  bbls. 
B  sugar,  2500  lb.,  at  ?  j*  ;  total,  $  ?  ;  received  his  check  on  Park  Bank,  in  full  payment. 

Mar.  17.   Received  %  500  of  Ray  Russell,  on  account,  per  check  on  State  Bank. 

Mar.  17.  Dej^osited  Amos  Kellogg's  check,  $  ?  ,  and  Ray  Russell's  check,  $  ? ; 
total,  I  ?  . 

INlar.  19.  Bought  of  R.  G.  Kimball  40  bbls.  A  sugar,  10000  lb.,  at  V  ^  ;  74  bbls. 
B  sugar,  18500  lb.,  at  ?  ^  ;  total,  ^  ?  ;  paid  in  full  for  same,  per  check  on  Homeville 
Bank. 

Mar.  19.   Paid  Knight  &  King,  on  account,  per  check  on  Homeville  Bank,  $200. 

Mar.  19.  Bought  of  Nathan  Norton  60  bbls.  A  sugar,  15000  lb.,  at  ?  ^  ;  paid  him, 
per  check  on  Homeville  Bank,  $275,  to  apply  on  bill. 

Mar.  20.  Sold  Quinu  &  Co.  10  bbls.  A  sugar,  2500  lb.,  at  ?  ^ ;  received  their  check 
on  Homeville  Bank  for  $  100,  to  apply  on  bill. 

Mar.  20  Sold  Leonard  Lyon  2600  gal.  N.  (5.  molasses,  at  ?  J^'  ;  20  bbls.  A  sugar, 
5000  lb.,  at  ?  ^  ;  total,  $  ?  ;  received  his  check  on  Park  Bank  for  $  1000,  to  apply  on  bill. 

Mar.  20.   Deposited  Quinn  &  Co.'s  check,  $  ? ,  and  Leonard  Lyon's  check,  $  ? ;  total,  $  ? . 

Mar.  21.  Bought  of  Thomas  Tyler  8250  gal.  N.  O.  molasses,  at  V  ^  ;  paid  him  $900, 
per  check  on  Homeville  Bank,  to  apply  on  bill. 

ISIar.  21.    Paid  Nathan  Norton  $  100,  per  check  on  Homeville  Bank,  on  account. 

Mar.  22.  Sold  Quinn  &  Co.  15  bbls.  A  sugar,  3750  lb.,  at  ?  jz'  ;  received  their  check  on 
Homeville  Bank  for  $  175,  to  apply  on  bill. 

Mar.  22.    Received  Leonard  Lyon's  check  for  $  1250,  on  Park  Bank,  on  account. 

Mar.  23.    Paid  Silas  Smith  $  750,  per  check  on  Homeville  Bank,  on  account. 

Mar.  23.  Bought  of  Thomas  Tyler  3250  gal.  N.  O.  molasses,  at  ?  ^  ;  paid  him  $750, 
per  check  on  Homeville  Bank,  to  apply  on  bill. 

Mar.  24.  Sold  Ray  Russell  1400  bus.  No.  2  wheat,  at  ?J^  ;  20  bbls.  A  sugar,  5000  lb., 
at  ?  jz*  ;  total,  $  ?  ;  received  his  check  on  State  Bank  for  $  700,  to  apply  on  bill. 

Mar.  24.  Sold  Quinn  &  Co.  200  bus.  oats,  at  ?  ^  ;  400  bus.  corn,  at  ?  ^  ;  total, 
$  ?  ;  received  $  150,  per  check  on  Homeville  Bank,  to  apply  on  bill. 

Mar.  24.   Received  $  300  from  Leonard  Lyon,  per  check  on  Park  Bank,  on  account. 

Mar.  24.  Deposited  in  Homeville  Bank,  Quinn  &  Co.'s  check  for  $  175,  Leonard 
Lyon's  check  for  $1250,  Ray  Russell's  check  for  $700,  Quinn  &  Co.'s  check  for  $150, 
and  Leonard  Lyon's  check  for  $300;  total,  $  ?  . 

Mar.  26.  Sold  Ray  Russell  1000  bus.  No.  1  wheat,  at  ?  ^  ;  30  bbls.  B  sugar,  7500  lb., 
at  ?  ^  ;  total,  $  ?  ;  received  his  check  for  $  750,  on  State  Bank,  on  bill. 

Mar.  26.   Paid  James  Brown  for  services  as  clerk,  $  22.50,  in  cash. 

Mar.  26.  Sold  Henry  Earl,  for  cash,  500  bus.  No.  1  wheat,  at  ?  ^  ;  1350  gal.  N.  O. 
molasses,  B,t2  f  ;  total,  $  ?  ;  received  his  check  on  Park  Bank,  in  full  payment. 

Mar.  27.  Sold  Leonard  Lyon  18  bbls.  extra  flour,  at  $  ?  ;  10  bbls.  A  sugar,  2500  lb., 
at  ?  ^  ;  total,  $  ?  ;  received  his  check  for  $  200,  on  Park  Bank,  to  apply  on  bill. 

Mar.  28.  Sold  Orrin  Olson  20  bbls.  B  sugar,  5000  lb.,  at  ?  ^  ;  300  bus.  oats,  at 
?  ^  ;  total,  $  ?  ;  received  his  check  on  State  Bank  for  $  300,  to  apply  on  bill. 

Mar.  29.  Sold  Ray  Russell  400  bus.  No.  1  wheat,  at  ?  ^  ;  12  bbls.  extra  flour, 
at  $  ?  ;  total,  $  ?  ;  received  his  check  on  State  Bank  for  $  250,  to  apply  on  account. 

Mar.  30.  Sold  Henry  Earl,  for  cash,  450  bus.  corn,  at  ?  ^  ;  15  bbls.  A  sugar,  3750 
lb.,  at  ?  ^  ;  total,  $  ?  ;  received  his  check  on  Park  Bank  for  full  payment. 

Mar.  31.  Deposited  in  Homeville  Bank,  Ray  Russell's  check,  $750;  Henry  Earl's 
check  f or  $  ?  ;  Leonard  Lyon's  check,  $  200 ;  Orrin  Olson's  cheek,  $  300 ;  Ray  Russell's 
check,  $25a;  Henry  Earl's  check,  $  V  ;  total,  $  ?  . 


120 


PRACTICE   IN  MODERN  BOOKKEEPING 


Inventory  of  Unsold  Property,  March  31,  19 — 


80  bbls.  A  Sugar,  20000  lb.                                      @  (cost)  ?  f 
24     "      B       "         6000    "                                     @       "       ?  f 
8400  gal.  N.  0.  Molasses                                        @       "       V  ^ 
900  bus.  No.  2  Wheat                                             @       "       ?  ^ 
2  mos.'  Rent,  prepaid                                              @         $  30 
11    "     Insurance,  prepaid                                       @              6.25 

? 
9 

? 
9 
9 

60 

68 

75 

6625 

75 

Trial  Balance,  March  31, 


List  I 


Face  of  Ledger 

Open  Accounts 

P. 

Balances 

? 

? 

Th.  E.  Student 

14 

3029 

88 

? 

? 

Wheat 

14 

340 

50 

? 

? 

Marion  Mead 

14 

1459 

38 

? 

? 

Cash 
Sugar       ^ 

22 

77 

? 

? 

16 

737 

49 

? 

? 

Corn        ]^ 

16 

25 

50 

? 

? 

Knight  &  King 

17 

1000 

? 

? 

Leonard  Lyon 

17 

170 

45 

? 

? 

Philip  Pond 

17 

120 

? 

? 

Orrin  Olson 

18 

467 

? 

? 

Xathan  Norton 

18 

775 

? 

? 

Flour 

18 

27 

? 

? 

Insurance 

19 

71 

88 

? 

? 

Oats 

19 

15 

? 

? 

Quinn  &  Co. 

19 

479 

13 

? 

? 

Ray  Russell 

20 

901 

05 

? 

? 

Molasses 

20 

4458 

? 

? 

Silas  Smith 

20 

3613 

75 

? 

? 

Thomas  Tyler 

20 

2120 

? 

? 

Expense 

21 

97 

50 

? 

? 

Homeville  Bank 

22 

4385 

51 

4171816 

41718 

16 

12185 

51 

12185 

51 

Footing  of  Trial  Balance,  March  31,  19 — 


Listl 
$41718.16 

2 

$42806.38 

3                            4 

$43894.66          $44982.88 

Cash  on  Hand,  March  31,  19— 

5 

$46071.16 

6 

$47159.38 

List    1 

$77.00 

2 

$89.50 

3                            4 

$102.00               $114.50 

Cash  in  Bank,  March  31,  19— 

5 

$127.00 

6 

$139.50 

List  1 
$4385.51 

2 

$4391.50 

3                            4 

$4397.51             $4403.50 

5 

$4409.51 

6 

$4415.50 

List  1 
$6625.75 

2 

$6876.75 

Total  Inventory,  March  31,  19— 
3                            4 

$7127.75            $7378.75 

5 

$7629.75 

6 

$7880.75 

GOMMERCIAJ.   PAPER 


121 


COMMERCIAL    PAPER 
Promissory  Notes 

A  Promissory  Note  is  a  written  agreement  by  one  party,  called  the 
maker^  for  or  in  consideration  of  some  value  received  by  him,  to  pay  to 
another  party,  called  the  payee^  or  to  his  order,  or  to  bearer,  at  a  fixed 
time,  a  detinite  sum  of  money.  This  promise  must  be  absolute,  no  contin- 
gency being  admissible ;  the  time  of  payment  and  the  amount  to  be  paid 
must  be  definitely  stated,  and  the  consideration  must  be  a  valuable  one. 

A  Negotiable  Promissory  Note  is  one  payable  to  order  or  to  bearer.  If  made  payable  to 
the  payee  or  hearer,  it  is  transferable  from  one  holder  to  another  by  simple  delivery ;  but  if 
made  payable  to  the  payee  or  order,  it  is  transferable  only  by  indorsement  or  assignment. 

• 
Form  of  a  Negotiable  Promissory  Note 


H^T^'^'lioo'  Clinton,  N.  Y.,  a^it  /7,  19—. 

cAx^^eX/u  cLauQ.  -.^.^.^.^.^.^.^-^...^  after  date,  for  value  received, 
J  promise  to  pay  RadneA^  #.  KAAyviyall ,  ..^.^.^.^.^.^.....^....^.^....^.^  or  order, 
S^cyiiv  flfwyicOv&ci  S^Of-tA^-a^eA^-an^  and  ^^Jioq  -^-^-^.^.^.^.^-...^-^-^-^-^^^^^  Dollars, 

at  tk&  /lf<yyyve.inytl&  Ba^it^. 


No.  /. 


hamicL  //.  (S.o(s.kui7b, 


A  Non-negotiable  Note  is  one  which  is  written  payable  to  a  particular  party  without 
the  privilege  of  transfer  by  delivery  or  indorsement,  the  negotiable  words  or  hearer  or 


or  order  being  omitted. 


Form  of  a  Non-negotiable  Note 


/^^/7i< 


Clinton,  N.  Y.,  Cljivlt  //,  19- 


cAinttA^  cLoAfh  ..^.^........^...v.^.^  after  date,  for  value  received, 

J  promise  to  pay  RacUv&if  ^.  /CvyyvO^t 

S^(yicv  /i-iAyTid/ieA^  S^vjtA^-QyeA^-em^,  a^yui  ^^Jiqq  ^..s/v^^^/^^ Dollars, 

u^-ttA  vnt&v&oZ  at  o^eA^-eAv  js^eA,  &&nt. 

No.  2.  ^dv-icL  /{.  ^(s^kum^. 


I 


The  Parties  to  negotiable  paper  are  known  as  Original  Parties  and  Subsequent 
Parties.  The  original  parties  are  those  whose  names  appear  in  the  instrument  when  it  is 
made.  The  subsequent  parties  are  those  to  whom  the  paper  may  have  been  transferred 
by  indorsement  or  otherwise. 

The  Maker  of  the  note  is  the  party  who  signs  it.  The  Payee  of  the  note  is  the  party 
to  whom  the  note  is  made  payable.  In  note  No.  1,  David  II.  Cochran  is  the  maker,  or 
Jirst  party,  and  Rodney  G.  Kimball  is  the  payee,  or  second  party. 


122 


PRACTICE  IN  MODERN  BOOKKEEPING 


An  Individual  Promissory  Note  is  one  which  is  signed  by  one  person  only. 
A  Joint  Promissory  Note  is  one  which  is  signed  by  two  or  more  persons,  who  are 
jointly  liable  for  its  payment,  and  is  written,  "  we  promise  to  pay,^'  etc. 

Form  of  a  Joint  Promissory  Note 


/#5/7, 


Cltntox,  N.  Y. 


U  17,  19—. 


cAvn&tAf  cLau^  after  date,  for  value  received,  aA^&  promise 
to  pay  RadneAf  ^.  /CiAyvinilt,  ^__._^^._____________  or  order, 

S^ouAy  /ifuncOb&d  ^Lf^t^-Q.tv-&ru  am.<l  ^^Jiqq Dollars, 

at  tk&  /'f(ymy£A)-iZt&  JSawh. 


No.  S. 


A  Joint  and  Several  Note  is  one  signed  by  two  or  more  persons,  who  are  jointly  and 

individually  responsible  for  itd\payment ;  it  is  usually  w^ritten,  "  we  jointly  and  severally 

promise  to  pay"  ] 

Form  or  a  Joint  and  Several  Promissory  Note 


\    H^^%oo'  Clinton,  N.  Y.,  a^Ut  //,  19—. 

cAi/yi&Cu  cLoAMy  after   date,  w-e^  jaimtlu  ayyui  Q.eA>-eAxxLU^ 

promise  to  pay  Ro-cOyieA^  ^.  /Clvv6-alt, or  order, 

S^a^cv  fi'um'cive^  <^ljtu-Q^eA)-&'yi  oa^cL  ^^Lqq Dollars, 

;     at  tk&  /lfa'nv&\Hl'l&  JSoLmJc,  lA^Xk  vnt&v&oX^  at  7^^' 


'    Value  received. 
Ko.  f . 


jbcLv-lcL  /if.  (^a(3,k/uirb, 


A  Principal  and  Surety  Note  is  one  which  is  signed  by  the  maker,  and  also  by  one  or 

more  persons  as  sureties. 

Form  of  Principal  and  Surety  Note 


100' 


Clinton,  N.  Y.,  {MvU  /7,  19 


c/tiyteXAf  cLoAAQy after  date,  for  value  received, 

c/  promise  to  pay  RacUoeAf  ^.  /Clyyv^^tt^ or  order. 


S^awb  /i-wncUy&cL  (^viti^-O'SA^&yv  a^ncC  ^y^, 


^  Dollars, 


at  'vyL'i 


No.  6. 


When  we  issue  our  promissory  note  we  should  record  the  fact  in  our  bill  book,  under 
Bills  Payable,  and  when  w^e  redeem  our  note,  either  wholly  or  in  part,  we  should  com- 
plete the  record  by  an  entry  in  the  same  book.  We  should  also  cancel  our  signature 
and  file  the  note  as  a  voucher.     See  pages  134  and  135. 


COMMERCIAL   PAPER 


123 


When  we  receive  another's  promissory  note,  it  should  be  recorded  in  the  bill  book, 
under  Bills  Receivable,  and  when  the  note  is  paid,  or  otherwise  disposed  of,  the  fact 
should  be  entered  in  the  same  book.     See  pages  134  and  135. 

Notes  Payable  on  Demand.  —  Notes  made  payable  on  demand  draw  interest  from  the 
date  of  demanding  payment. 

A  note  does  not  draw  interest  until  maturity  unless  it  is  otherwise  stated  in  the  note. 

An  indorser  becomes  liable  for  the  payment  of  a  note  if  the  maker  fails  to  pay. 


Drafts  and  Acceptances 

A  Draft  or  Bill  of  Exchange  is  a  written  order  or  request  from  one 
party,  called  the  drawer^  on  a  second  party,  called  the  drawee^  to  pay  to  a 
third  party  named  therein,  called  the  payee^  or  to  his  order,  a  specified 
sum  of  money. 

The  Parties  to  a  draft  or  bill  of  exchange  are  as  follows : 

The  Drawer,  or  first  party,  is  the  party  who  draws  the  draft. 

The  Drawee,  or  second  party,  is  the  one  on  whom  the  draft  is  drawn. 

The  Payee,  or  third  party,  is  the  party  in  whose  favor  the  draft  is  drawn. 

Form  of  Time  Draft  after  Sight 


At  ^ki'iZif  cLa^'m/  ^ 
Pay  to  c^/t.  €.  oftiidemt 
(^-na  /ifu'ndv&ct  CLncL  ^^Lqq 
and  charge  to  the  account  of 
To  Jb-CLV-vcL  /if.  ^.o^kvayv, 


Albany,  N.Y.,  nic^x^lv  3,  19—. 

sight,  value  received, 
or  order, 
^  Dollars, 


tH>. 


ru. 


In  the  foregoing  draft,  George  W.  Plympton  is  the  drawer,  David  H.  Cochran  is  the 
drawee,  and  Tli.  E.  Student  is  the  payee. 

Accepting  a  Draft.  —  The  drawee  of  a  draft  accepts  the  draft  by  writing  across  its  face 
the  date,  the  word  accepted,  and  his  signature.  The  drawee  then  becomes  the  acceptor, 
and  the  draft  becomes  an  acceptance. 

Form  of  Accepted  Draft  or  Acceptance 


At  ^kViZu  cLxrXio/ 
Pay  to  S^k.  €.  ofUccl&nt 
€n&  /fu/ncCv&cC  cuncL  ^^/loo 


Albany,  K^.,  maA^  3,  19—. 

^^^jll^^ht,  value  received, 

or  order, 

Dollars, 


and  charge  to  the  account  o 
To  Jb-aiyvcC  ff.  ^.o^k\xM^^ 


Stouft  W-.  S^t/ifm/ptcyyu. 


124 


PRACTICE  IN  MODERN  BOOKKEEPING 


The  foregoing  acceptance  becomes  a  written  promise  of  the  drawee  to  pay  the  accept- 
ance at  the  specified  time,  and  therefore  has  the  same  force  as  a  promissory  note  signed 
by  the  same  party. 

When  we  accept  a  draft,  we  should  record  the  fact  in  our  bill  book,  under  Bills 
Payable,  and  when  we  redeem  it,  we  should  mark  it  "  paid  "  in  the  bill  book,  and  also 
cancel  our  signature  and  file  the  draft  as  a  voucher.     See  pages  134  and  135. 

When  we  receive  another  party's  acceptance,  we  should  make  a  record  of  it  in  the 
bill  book,  under  Bills  Receivable,  and  when  it  is  paid,  or  otherwise  disposed  of,  the  fact 
should  be  entered  in  the  same  book.     See  pages  134  and  135. 

A  Time  Draft  is  one  which  is  payable  a  certain  time  after  sight  or  after  date. 

After  Sight.  —  A  draft  drawn  payable  a  certain  time  after  sight  begins  to  mature 
from  the  date  of  acceptance. 

After  Date.  —  A  draft  drawn  payable  a  certain  time  after  date  begins  to  mature  from 
the  date  of  the  draft. 

Form  of  Time  Draft  after  Date 


Albany,  N.  Y.,  Tf^oA^k  3,  19 — . 


^kxAty'je^i^  cij^t&v  elate, 
Pay  to  Raclm.&'if^-^.  /CvnUnill, 

€.'yv&  fi-wncOv&ci  ouncL  ^^Jiqq  

and  charge  to  the  account  of 

To  ^aayicC  /if.  ^^kiayyv, 
Ulntxyyv,  cA.  ?/. 


value  received, 
or  order, 
Dollars,  f/00'^'\ 


\         Stavab  Zi}-.  S^tywyJotaTb. 


A  Sight  Draft  is  one  which  requires  immediate  payment,  though  in  some  states  days 
of  grace  are  allowed. 

Form  of  Sight  Draft 


f/OO""".  Albany,  N.  Y.,  moA^k  S,  19—. 

At  ^iakt, ^^  value  received. 

Pay  to  Ro-drueAf  #.  /Ciyyvlmll,  or  order, 

^^yv&  f-fwruUexi  cuyid  ^^f^^Q  ...^.........^.^...^.^....^........^^  Dollars, 

and  charge  to  the  account  of 

To  ^a/v-icl  /if.  ^&huin, 


Stohab  lA}-.  S^tyryuptaru. 


Drafts  Payable  on  Demand.  —  Days  of  grace  are  not  allowed  on  drafts  drawn  payable 
on  demand. 

Protesting  is  formally  demanding  payment  of  a  note  or  draft  when  it  falls  due,  and 
notifying  the  indorsers  that  they  are  held  liable  for  any  loss  or  damage  from  non-pay- 
ment or  non-acceptance. 

It  is  not  necessary  to  protest  a  note  when  there  is  no  indorser. 

An  indorser  who  has  been  compelled  to  pay  a  note  may  recover  his  loss  from  the 
maker  if  the  latter  has  property. 


COMMERCIAL   PAPER  125 

Maturity  of  Commercial  Paper 

It  is  a  matter  of  great  importance  to  the  man  of  business  to  know  the 
exact  day  on  which  a  note  or  acceptance  matures.  If  an  indorser  is  not 
notified  of  the  non-payment  of  a  note  or  acceptance  on  the  proper  day,  the 
law  will  not  hold  him  for  the  payment  of  the  dishonored  paper. 

A  note  may  be  dated  earlier  or  later  than  the  day  on  which  it  is  made. 
If  the  date  or  time  to  run  is  omitted,  it  may  be  established  by  proof. 

A  note  need  not  be  dated  at  the  place  where  it  is  made,  and  may  be 
made  payable  at  any  particular  place  that  may  be  agreed  upon  by  the 
parties.  If  agreeable  to  the  payee,  the  maker  ought  to  fix  the  place  of 
payment,  which  may  be  at  his  own  ofhce  or  his  place  of  deposit. 

The  Day  of  Maturity  is  the  day  on  which  a  nOte  or  acceptance  becomes  legally  due. 
In  many  of  the  states  a  note  or  draft  is  not  legally  due  until  three  days  after  the  expira- 
tion of  the  time  specified  in  the  instrument,  except  it  contain  the  words  "  without  grace." 

Days  of  Grace  are  three  days  allowed  to  the  maker  of  a  note  and  drawee  of  a  draft 
beyond  the  stated  time  of  payment. 

The  statutes  and  customs  of  the  different  states  vary  in  regard  to  days  of  grace,  and 
holidays.  The  maturity  of  a  note  or  draft  is  governed  by  the  laws  and  customs  of  the 
state  where  it  is  made  payable. 

Legal  Holidays.  —  Commercial  paper  falling  due  on  a  legal  holiday  or  on  Sunday  is 
payable  the  day  before,  in  some  states;  the  day  after,  in  others. 

A  Calendar  Month  is  understood  in  determining  the  day  of  maturity  when  the  time 
to  run  is  expressed  in  months ;  when  the  time  is  expressed  in  days,  the  exact  number  of 
days  is  used. 

Paper  dated  on  the  last  day  of  the  month  for  any  number  of  months,  payable  in 
states  where  days  of  grace  are  allowed,  will  mature  on  the  third  day  after  the  same  day 
of  the  month  if  the  month  have  so  many  days ;  otherwise  it  will  mature  on  the  third 
day  after  the  last  day  of  the  month. 

Illustrations.  —  A  note  payable  one  month  after  date,  dated  Apr.  30,  will  mature 
on  the  third  day  after  May  30 ;  and  a  note  at  one  month  dated  May  31  will  mature  on  the 
third  day  after  June  30.  A  note  payable  one  month  after  date,  dated  Jan.  31,  will  mature 
on  the  third  day  after  Feb.  28  (or  Feb.  29),  Mar.  3 ;  but  if  payable  thirty  days  after  date, 
it  will  mature  Mar.  5  (or,  in  leap  year,  Mar.  4).  Notes  dated  Jan.  29,  30,  and  31  (also, 
except  in  leap  years,  Jan.  28),  payable  in  one  month,  will  mature  on  the  same  day.  Mar.  3 
(or,  in  leap  year,  Mar.  4). 

Indorsements  of  Commercial  Paper 

An  Indorsement  is  a  writing,  usually  upon  the  back,  but  sometimes  upon 
tlie  face,  of  a  negotiable  instrument,  by  which  the  property  therein  is  trans- 
ferred.     It  may  be  ivi  blanks  infulU  qualified,  restrictive,  or  conditional. 

An  Indorser.  —  By  writing  his  name  across  the  back  of  a  note  or  draft,  the  payee 
becomes  an  indorser,  and  thereby  transfers  his  property  in  the  instrument  to  another, 
who  becomes  the  indorsee.  If  the  indorsee  of  an  instrument  transfers  it  by  writing  his 
name  below  that  of  the  former  indorser,  he  then  becomes  an  indorser. 

An  Indorsement  in  Blank  consists  simply  of  the  signature  of  the  indorser.  An  instru- 
ment thus  iudorsed  becomes  payable  to  hearer,  and  may  be  transferred  from  one  party  to 
another  by  delivery. 


126 


PRACTICE  IN  MODERN  BOOKKEEPING 


An  Indorsement  in  Full  consists  of  direction  to  pay  to  some  specified  party  or  his 
order,  and  the  signature  of  the  indorser. 

A  Restrictive  Indorsement  limits  the  negotiability  of  the  instrument  to  a  particular 
party,  or  to  a  particular  purpose.  The  payee  or  first  indorser  only  can  make  a  re- 
strictive indorsement  binding. 

A  Qualified  Indorsement  is  one  made  for  a  special  purpose,  as  when  the  indorser 
wishes  to  free  himself  from  responsibility  should  the  maker  refuse  to  pay. 

A  Conditional  Indorsement  consists  in  making  the  payment  depend  upon  some  con- 
tingency, as  "  Pay  to  David  Burt  if  State  Superintendent." 

A  Security  Indorser  is  one  who  indorses  commercial  paper  without  owning  it  or 
having  any  interest  in  it. 

The  promissory  note  No.  1,  on  page  121,  is  made  payable  to  Rodney  G.  Kimball  or 
order.  Should  Mr.  Kimball  desire-  to  sell  this  note,  he  could  transfer  his  title  or  owner- 
ship to  the  buyer  by  writing  his  name  across  the  back  of  the  note.  Had  the  note  been 
made  payable  to  Rodney  G.  Kimball  or  bearer,  he  could  transfer  his  ownership  to 
another  party  by  delivery  without  indorsement. 

The  maker  of  a  note  may  make  it  payable  to  himself  and  indorse  it  in  blank,  and 
thus  enable  the  holder  to  transfer  it  without  indorsing,  and  thus  w  ithout  liability. 

A  Member  of  a  Firm  may  indorse  for  all  the  members  of  the  firm,  but  after  dissolu- 
tion of  the  firm  the  indorsement  must  be  made  by  the  members  severally. 

An  Agent  may  indorse  iat  his  principal. 

An  indorsement  should  be  written  across  the  back  of  the  instrument  and  above  the 
middle,  with  the  left  end  of  the  paper  up. 


Forms  of  Indorsements 


In  Blank 


c^/i.  0.  ofVwd&nt 


In  Full 


c^oy  to  cb-.  L.  /CLeAt&,  cyb  (yui&v. 
3^k.  €.  ^tAocL&nt 


For  Deposit  of  Check 


cyyiti 


COiuj.    23,    /^ — .      S^av   deyJiw^AZ 


vyv 


Fob  Collection 


S'ay  to  tk&  cyicC&'b 
/lf(ymy&  ^ttif  fSa/vik^  iov  e^ 


Guarantee  of  Payment 


c/  h.&'b&lyu  auaAM.^t&&  tJv& 

jiui,x^\yL&nt  o^  tk&  w-itkvrv  ru)te. 

S'h.  (o.  c/ttul&nt 


Conditional 


<^a/u  to  jokw  CC.  1h^&,  (^  ^v&qa.- 
cl&nt  o^  tk&  fSociui  oj'  ^cOwe^tuyyi. 
i^k.  €.  ^tiuiemt 


Restrictive 


to  ^.  ^.  €/icvtt^Qy  (yyili^. 
<3^k.  <o.  ^tiode/yiZ 


Qualified 


ZO-UJicmt  v&<s^cyiou^&  to  ^n^&. 
<jk.  <o.  ^t/wci&nt 


To  Agent 


OVcL&l,    toV   WAd'   UOy^y. 

S'k.  <o.  ^tAcctemZ 


ov 


Installment 


CL'wcf.    28 f    /^ — .       R&(s^eAA>-&ci  on 
tk&  wdZkvru    yu>t&,   €n&   /f'wyuU&cL 


Of  Interest 


/^a^&tv-&d,  Ctauf.  23f/9—,  //f' 
Imt&imt  to  dat&. 

oik.  S.  ^t/wcl&nt 


Waiver  of  Protest 


i^ay  to  tk&  otd&v  oi  lAMZttamv 
Z#.  ^otw-eZt.      S^vot&at  lAhivv-exi. 
<^k.  <D.  ^tnLcL&nt 


ORDERS  127 

ORDERS 

An  Order  is  a  written  request  that  merchandise,  money,  or  other 
property  be  delivered  to  some  particular  person,  or  to  the  person  writing 
the  order. 

Form  of  an  Order  for  Merchandise 


HOMEVILLE, 

(state),  f^one.  /^,  19—. 

To  Q.Q/s^aAy  ofcLw^&v  : 

M&a^& 

d&tvv-&v 

to-    tJl& 

(yex^v&v,    Ra6~&vt   /if.    £&o-na.ui, 

TyieA/^kam^dl^t 

i^iayyo  uaui  Q.tav&  o^iv^k  a^  k& 

'yyiM.i^  Q^eyte^t,  ta  tk&  v-at^ue^ 

cy^  ^v^t&&7i  am^cL  ^^Jiqq 

^o-tcaiQ^ 

{f/sJ% 

ayyuL 

e^ka'b(^&  tA&  A^aA}v&  to-  -w.y 

cM.^x}■^^mt. 

P^''/m- 

^k.  €.  ^tAide/yil. 

Letter  Form  of  an  Order 


TH.  E.   STUDENT, 

Bookseller, 

23  Main  Street. 

HOMEVILLE 

(state),  fu.tif  10,  19—. 

CZ'yyu&vv&ci^  Boo-k  ^., 

Wu^kvyu^tan 
^s/yitl&'m&rL  : 

^CflAXJLA^,  cAe^w-  'Uo^. 

M&aQ^&  p)-\/iv-ciui  to  Wy^  (yif  Tfl&ixs^kantoy  ^ui/^t?A  tk&  ^oltow— 
truf  (yo-ok^^  : 

SO  is^^v&Q.  CCm.&ilM.'yi  ^toAvcLchul  }Sook£&&ja.vn(f,  /if.  c/.  ^o^vo^s,            \ 

J6       ff                ff 

ff 

/,                        ^O'Mi..             // 

/O  cio^.    ^ICiZidQ/ 

cS^v&&  /i-ouyul  ^juAf  Boo 

^ko.,  cAo.  / 

8     ff            ff 

tf                             ff 

//  2 

0       ff                  ff 

//                                   // 

•    ff    s 

f    //         // 

//                             // 

ff  ^ 

^    //          // 

//                              ff 

ff     6 

Q.£Aui  ym^,  at  ifou.v  &aA.tC&at  €^yytv-&nle/yi^&,  i^owb 

^k.  €.  ^tucCemt. 

128  PRACTICE  IN  MODERN  BOOKKEEPING 

Fourth  Set.  —  Groceries.  —  Student,  ^ole  Proprietor 

The  Object  of  the  Set  is  to  familiarize  the  student  with  the  entries  of 
transactions  which  involve  promissory  notes.  He  will  learn  the  forms 
and  the  uses  of  the  note  book  and  the  bill  book  as  auxiliary  books,  and 
will  have  much  practice  in  keeping  them. 

The  business  represented  in  the  memoranda  is  a  continuation  of  that 
recorded  in  the  preceding  set.  The  student  will  continue  to  act  as 
proprietor  and  bookkeeper. 

The  more  difficult  entries  are  fully  illustrated  in  the  journal-daybook 
of  the  first  two  weeks,  which  should  be  thoroughly  studied.  The  con- 
sideration of  interest  and  discount  will  be  made  the  special  subject  of 
a  succeeding  set. 

Characteristics.  —  Continuing  a  former  business  with  a  net  capital  as  shown  by  the 
balance  sheet ;  buying  and  gelling  diiferent  kinds  of  merchandise  for  cash,  on  account, 
and  on  promissory  notes ;  rec^ving  and  paying  cash  on  account  and  on  promissory  notes; 
realizing  a  gain,  and  closing  with  an  increased  capital. 

Business  Forms  Used.  — ^Bills  of  parcels,  receipts,  deposit  tickets,  checks,  promissory 
notes,  business  statements,  financial  statements,  and  balance  sheets. 

Books  Used. — Journal-daybook,  ledger,  receipt  book,  check  book,  bank  pass  book, 
note  book,  bill  book,  cash  book,  and  stock  record  book. 

Ledger  Titles  and  Number  of  Lines  Each  will  Require.  —  Th.  E.  Student,  9  ;  Wheat,  9 ; 
Expense,  12 ;  Philip  Pond,  4 ;  Sugar,  14 ;  Insurance,  9  ;  Molasses,  12 ;  Leonard  Lyon,  5 ; 
Orrin  Olson,  7 ;  Quinn  &  Co.,  7 ;  Ray  Russell,  9 ;  Knight  &  King,  6 ;  Homeville  Bank, 
24 ;  Marion  Mead,  7 ;  Nathan  Norton,  4 ;  Silas  Smith,  7 ;  Thomas  Tyler,  7  ;  Bills  Pay- 
able, 19;  Bills  Receivable,  24;  Apples,  11;  Cash,  32;  Potatoes,  12;  Ulysses  Upham,  4; 
V.  Van  Ness,  4;  Amos  Arnold,  6;  Zadoc  Young,  4;  William  Windom,  6;  Benoni 
Butler,  6;  James  King,  4;  Henry  Sabin,  4;  Charles  Chute,  4;  Henry  Ivison,  4;  D. 
Evans,  4 ;  John  Adams,  4 ;  James  K.  Polk,  4 ;  Thomas  Lowry,  4 ;  Rye,  6 ;  Loss  &  Gain, 
16 ;  Balance,  18. 

DIRECTIONS   FOR   WORKING  FOURTH   SET 

1.  Complete  all  the  work  of  each  day  before  commencing  the  work  of  any  succeed- 
ing day,  as  follows :  (a)  make  out  all  bills  of  parcels,  both  incoming  and  outgoing ; 
(/>)  write  in  the  receipt  book  all  the  receipts  for  money  received,  and  on  blanks  receipts 
for  aU  money  paid ;  (c)  write  in  the  check  book  aU  checks  issued,  and  on  blanks  all 
checks  received  from  other  persons;  (c?)  write  in  the  note  book  all  notes  issued,  and 
on  blanks  all  notes  received  from  other  persons ;  (e)  record  in  the  bill  book  all  notes 
issued  and  all  notes  received,  and  check  in  the  bill  book  all  notes  redeemed  and  disposed 
of ;  (/)  prepare  deposit  tickets  for  all  deposits  made,  and  make  corresponding  entry 
in  the  bank  pass  book;  (^g)  write  in  the  cash  book  all  cash  receipts  and  disbursements, 
closing  the  cash  book  Apr.  7  and  Apr.  14. 

2.  Record  in  the  journal-daybook  all  transactions  to  the  15th  day  of  the  month, 
and  post  to  the  ledger. 

3.  Take  a  trial  balance,  and  prepare  an  inventory  of  goods  on  hand  Apr.  14. 

4.  Close  the  ledger  in  current  form,  prepare  business  and  financial  statements,  and 
make  balance  sheet. 

5.  Write  up  the  business  for  the  remainder  of  the  month  in  the  same  way, 
closing  the  cash  book  Apr.  21  and  Apr.  30,  but  closing  the  ledger  in  final  form. 


FOURTH  SET 

Buying  Price  Lists 


129 


Articles 

Per 

1 

2 

3 

4 

5 

6 

Wheat,  No.  2 

bus. 

50^' 

52^ 

54  i? 

56}* 

58^ 

60  J* 

Sugar,  A 

lb. 

43^ 

5^ 

51^ 

r4^ 

5|^ 

6^ 

"        B 

(( 

•3f  5^ 

4^ 

4i^ 

4^^ 

4|f 

5^ 

Molasses 

gal. 

58^ 

60^ 

62  j? 

64)2^ 

66^ 

68  J? 

Apples,  Mich. 

bbl. 

2.75 

2.80 

2.85 

2.90 

2.95 

3.00 

Potatoes,  Early  Rose 

bus. 

45^ 

47^ 

49^ 

51^ 

53^ 

55^ 

"            Snowflake 

(( 

50^ 

52^ 

54^ 

56  <* 

58^ 

60^ 

Rye 

a 

40  <» 

42^ 

44  f 

46^ 

48)* 

50^ 

Selling  Price  Lists 


Articles 

Per 

1 

2 

3 

4 

5 

6 

Wheat,  No.  2 

bus. 

53^ 

55^ 

57^ 

59 1* 

61^ 

63  f 

Sugar,  A 

lb. 

5|^ 

Qf 

Hf 

6if 

6|^ 

7j* 

"       B 

(( 

4|^ 

bf 

^f 

^o\f 

5f;* 

6^ 

Molasses 

gal. 

67^ 

69;* 

71  J* 

73^ 

75^ 

77^ 

Apples,  Mich. 

bbl. 

3.25 

3.30 

3.35 

3.40 

3.45 

3.50 

Potatoes,  Early  Rose 

bus. 

56^ 

58}* 

60^ 

62^ 

64^ 

66)* 

"           Snowflake 

u 

61^ 

63^ 

65^ 

67^ 

69^ 

71  i* 

Rye 

a 

44^ 

46,<* 

48^ 

50^ 

52^ 

54)* 

MEMORANDA  OF   TRANSACTIONS 

Homeville,  INIonday,  Apr.  2,  19 — .  Opened  a  new  set  of  books  with  the  following 
resources  and  liabilities,  as  shown  by  my  balance  sheet,  Mar.  31.  —  Resources:  cash  on 
hand,  f  ?  ;  wheat  on  hand,  %  ?  ;  sugar  on  hand,  %  ?  ;  molasses  on  hand,  %  ?  ;  rent,  prepaid, 
%  ?  ;  insurance,  prepaid,  f  ?  ;  Leonard  Lyon's  account,  %  ?  ;  Orrin  Olson's  account,  %  ?  ; 
Quinn  &  Co.'s  account,  %  ? ;  Ray  Russell's  account,  %  ?  ;  Homeville  Bank,  on  deposit,  %  ?  ; 
total,  %  ?  .  Liabilities  :  Knight  &  King's  account,  %  ? ;  Marion  Mead's  account,  %  ? ;  Nathan 
Norton's  account,  %  ?  ;  Philip  Pond's  account,  %  ?  ;  Silas  Smith's  account,  %  ?  ;  Thomas 
Tyler's  account,  %  V  ;  total,  %  ?  . 

Note.  —  The  items  in  the  foregoing  statement  of  resources  and  liabilities  are  taken  from  the 
balance  sheet  of  Mar.  31.  The  student  will  use  the  same  titles  and  corresponding  amounts  shown 
in  his  balance  sheet. 

Apr.  2.  Sold  Ulysses  Upham  7  bbls.  A  sugar,  1750  lb.,  at  ?  ^ ;  received  his  note  at 
8  days  in  payment. 

Note.  —  All  promissory  notes  in  this  set  are  drawn  without  grace  unless  otherwise  specified. 

Apr.  2.  Bought  of  Victor  Van  Ness  250  bus.  early  rose  potatoes,  at  ?  )* ;  gave  in 
payment  my  note  at  8  days. 

Apr.  2.   Paid  cash  for  sundry  expenses,  $  11.75. 

Apr.  2.  Sold  Zadoc  Young  8  bbls.  A  sugar,  2000  lb.,  at  ?  )* ;  50  bus.  E.  R.  potatoes, 
at  ?  )* ;  total,  $  ?  ;  received  his  note  at  15  days. 

Apr.  3.   Sold  William  Windom,  on  his  note  at  10  days,  450  bus.  No  2  wheat,  at  ?  )*. 

Apr.  3.  Bought  of  Amos  Arnold  325  bbls.  Michigan  apples,  at  $  ?  ;  gave  in  part 
payment  my  note  at  10  days  for  ^500,  and  my  check  on  Homeville  Bank  for  the 
balance,  ^  ?  . 


130 


PRACTICE  IN  MODERN  BOOKKEEPING 


Apr.  4.  Sold  Quinn  &  Co.  120  bbls.  Michigan  apples,  at  $  ?  ;  received  in  part  pay- 
ment their  ripte  at  10  days  for  $175,  their  check  on  Homeville  Bank  for  the  balance. 

Apr.  4.   Received  Orrin  Olson's  note  at  15  days  for  $250,  on  his  account. 

Apr.  5.    Gave  Knight  &  King  my  note  at  9  days  for  $  500,  on  account. 

Apr.  5.   Paid  Nathan  Norton  in  full  of  account,  per  check,  $  ?  . 

Apr.  5.   Received  Leonard  Lyon's  note  at  12  days,  for  $  ?  ,  in  full  of  account. 

Apr.  6.   Passed  my  note  at  15  days  to  Philip  Pond,  for  $  ?  ,  in  full  of  account. 

Apr.  6.  Bought  of  Amos  Arnold  750  bus.  snowflake  potatoes,  at  ?  ^  ;  150  bbls. 
Michigan  apples,  at  $  ?  ;  total,  $  ?  ;  gave  in  part  payment  my  note  at  12  days  for  $500, 
and  check  for  the  balance,  $  ?  . 

Apr.  7.  Sold  Benoni  Butler  4  bbls.  A  sugar,  1000  lb.,  at  ?  j^  ;  received  in  full  pay- 
ment his  note  at  9  days,  $  ?  . 

Apr.  7.   Received  Ray  Russell's  check  on  State  Bank  for  %  250,  to  apply  on  account, 

Apr.  7.   Deposited  Quinn  &  Co.'s  check,  $  ?  ,  and  Ray  Russell's  check,  |  ?  ;  total,  $  ?  . 

Apr.  9.   Paid  Silas  Smith  $  500  per  check,  to  apply  on  account. 

Apr.  9.  Received  of  Ulysses  Upham  his  check  on  Park  Bank  for  $  ?  ,  in  full  of  his 
note  of  Apr.  2. 

Apr.  10.   Paid  Victor  Van  Ness,  per  check,  in  full  of  my  note,  his  favor,  of  Apr.  2,  $  ?  ► 

Apr.  10.   Received  Qui^&  Co.'s  check  on  Homeville  Bank  for  $200,  on  account. 

Apr.  11.   Paid  Marion  Mead  $500  per  check,  to  apply  on  account. 

Apr.  12.  Sold  Thomas  Tyler,  on  account,  75  bus.  snowflake  potatoes,  at  ?  ^  ;  30  bbls. 
Michigan  apples,  at  $  ?  ;  total,  $  ?  . 

Apr.  13.  Received  from  William  Windom  his  new  note  at  12  days  for  $  200  and 
his  certified  check  on  Park  Bank  for  the  balance  of  his  note  of  Apr.  3. 

Apr.  13.  Redeemed  my  note  of  Apr.  3,  favor  of  Amos  Arnold,  for  $500,  due  to-day, 
by  issuing  my  new  note  at  6  days,  his  favor,  for  $350,  and  paying  him  per  check  for 
the  balance,  $  ?  . 

Apr.  13.   Sold  Leonard  Lyon,  on  account,  650  gal.  N.  O.  molasses,  at  ?  ^  . 

Apr.  14.   Paid  James  Brown  cash  in  full  for  services  as  clerk,  $35. 

Apr.  14.   Paid  Knight  &  King  in  full  of  account  per  check,  $  ?  . 

Apr.  14.  Received  Quinn  &  Co.'s  new  note  at  10  days  for  $100,  and  their  certified 
check  on  Homeville  Bank  for  $  ?  ,  in  full  of  their  note  of  Apr.  4. 

Apr.  14.  Redeemed  my  note  of  Apr.  5,  favor  of  Knight  &  King,  for  $500,  by  issuing 
my  new  note  at  12  days,  their  favor,  for  $250,  and  my  check  for  $250. 

Apr.  14.  Bought  of  Thomas  Tyler  1500  bus.  rye,  at  ?  ^  ;  gave  him  my  note  at  12 
days,  for  $500,  and  my  check  for  the  balance. 

Apr.  14.  Deposited  in  Homeville  Bank,  Ulysses  Upham's  check  for  $  ?  ;  Quinn  & 
Co.'s  check  for  $?  ;  William  Windom's  check  f or  $  ?  ;  Quinn  &  Co.'s  check  for  $?  ; 

total,  $  ?  . 

Inventory  of  Merchandise  on  Hand,  April  14,  19 — 


?  bbls.  A  Sugar,  15250  lb.                                                     ?  f 
?     "     B       "         6000  1b.                                                     'if 
?  bus.  No.  2  Wheat                          .                                   ?  f 
?  gal.  N.  0.  Molasses                                                '          ?  f 
?  bus.  Early  Rose  Potatoes                                                 ?  ^ 
?    "     Snowflake          "                                                          'if 
?  bbls.  Michigan  Apples                                                  $  ? 
?  bus.  Rye                                                                             ?  f 
1|  months'  Rent                                                                $30 
101        u         Insurance 

V 

? 

? 

? 

9 

45 

65 

62 

V 

V 

FOURTH  SET 


131 


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132 


PHAGTIGE  IK  MODERN  BOOKKEEPING 


Journal-Daybook 


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FOURTH  SET 


Journal-Daybook,  Continued 


133 


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200 
38 


260 


600 


60 


238 


60 


134 


PRACTICE  IN  MODERN  BOOKKEEPING 


BILLS   PAYABLE,    Left-hand  Page 


Bill 


No. 

AVhen 
Issued 

Maker  or  Drawee 

Payee 

Where  Payable 

For  What  Given 

1 
2 
3 
4 
5 
6 

19— 
Apr. 

n 

ii 
ii 
il 
ii 

2 
3 
5 
6 
6 
13 

Th.  E.  Student 

a 
ii 
a 
li 
ii 

v.  Van  Ness 
Amos  Arnold 
Knight  &  King 
Philip  Pond 
A.  Arnold 
A.  Arnold 

Homeville  Bank 

ii 

ii 
My  Ofl&ce 
Homeville  Bank 

a 

Mdse. 

On  Account 
Full  of  Acct. 
Mdse. 
Old  Note 

BILLS   RECEIVABLE,   Left-hand  Page 


No. 

When 
Received 

Maker  or  Drawee 

Payee 

Where  Payable 

For  What  Received 

19 

1 

Apr. 

2 

U.  Upham 

Th.  E.  Student 

His  Office 

Mdse. 

2 

u 

2 

Z.  Young 

(; 

(( 

a 

3 

11 

3 

W.  Windom 

ii 

ii 

a 

4 

ii 

4 

Quinn  &  Co. 

a 

Their  Office 

a 

5 

ii 

4 

Orrin  Olson 

a 

His  Office 

On  Account 

6 

ii 

5 

L.  Lyon 

a 

(( 

Full  of  Acct. 

MEMORANDA   OF   TRANSACTIONS,  Continued 


Homeville,  Monday,  Apr.  16,  19 — .  Sold  James  King  150  bus.  E.  R.  potatoes,  at 
?  ^  ;  125  bbls.  Michigan  apples,  at  $  ?  ;  total,  $  ?  ;  received  his  note  at  10  days  for  $  350, 
and  his  check  on  Park  Bank  for  the  balance,  $  ?  . 

Apr.  16.  Received  Benoni  Butler's  check  on  State  Bank  for  $  ?  ,  in  full  payment  of 
his  note  of  the  7th  inst. 

Apr.  17.  Received  Zadoc  Young's  check  on  Park  Bank  for  ^  ?  ,  in  full  payment  of 
his  note  of  Apr.  2. 

Apr.  17.  Sold  Henry  Sabin  450  bus.  No.  2  wheat,  at  ?  ;* ;  received  in  payment  his 
check  on  Homeville  Bank. 

Apr.  17.  Received  Leonard  Lyon's  check  on  Park  Bank  for  $  ?  ,  in  full  payment  of 
his  note  of  the  5th  inst. 

Apr.  18.  Redeemed  my  note  of  the  6th  inst.,  favor  of  Amos  Arnold,  f or  $  ?  ,  by  issu- 
ing a  new  note  at  10  days  for  ^350,  his  favor,  and  my  check  for  the  balance,  $  ?  . 

Apr.  18.  Sold  Charles  Chute  750  gal.  N.  O.  molasses,  at  ?  j*  ;  5  bbls.  A  sugar, 
1250  lb.,  at  ?  J?  ;  total,  %  ?  ;  received  in  payment  his  note  at  12  days  for  1 300,  and  his 
check  on  State  Bank  for  the  balance,  %  ?  . 

Apr.  18.  Deposited  in  Homeville  Bank,  checks,  as  follows :  James  King's,  $  ?  ;  Benoni 
Butler's,  %  ?  ;  Zadoc  Young's,  $  ?  ;  Henry  Sabin's,  f  ?  ;  Leonard  Lyon's,  $  ?  ;  Charles 
Chute's,  $  ?  ;  total,  $  ?  . 

Apr.  18.   Paid  cash,  $23.75,  for  sundry  expenses. 

Apr.  19.  Received  Orrin  Olson's  check  for  $  ?  ,  in  full  payment  of  his  note  of  the 
4th  inst. 


FOURTH  SET 


135 


Book 


BILLS 

PAYABLE 

Bight-hand  Page 

Date 

Time  to 
Run 

When  Due 

Face 

When  and  How 
Redeemed 

Year 

J. 

F. 

M. 

A. 

M. 

J. 

J. 

A. 

S. 

o. 

N. 

D. 

Apr. 

2 
3 
5 
6 
6 
13 

8ds. 
10  " 

9  " 
15  " 
12  " 

6  " 

19— 
19— 
19— 
19— 
19— 
19— 

10 
13 
14 
21 

18 
19 

112 
500 
500 
120 
500 
350 

50 

19- 
Apr. 
Apr. 
Apr. 

10 
13 
14 

Paid 
Paid 
Paid 

BILLS 

RECEIVABLE, 

Bight-hand  Page 

Date 

Time  to 
Run 

When  Due 

Face 

When  and  How 
Disposed  Of 

Year 

J. 

F. 

M. 

A.!M. 

J. 

J. 

A. 

S. 

0. 

N. 

D. 

19 

19- 

Apr. 

u 
li 

2 
2 
3 
4 
4 
5 

8ds. 
15  " 
10  " 
10  " 
15  " 
12  " 

19— 
19— 
19— 
19— 
19— 
19— 

10 
17 
13 
14 
19 
17 

100 
143 
238 
175 
250 
170 

63 
50 

45 

Apr. 

Apr. 
Apr. 

9 

13 
14 

Paid 

Paid 
Paid 

Apr.  19.  Redeemed  my  note  of  the  13th  inst.  for  $  350,  favor  of  Amos  Arnold,  per 
check  on  Homeville  Bank,  favor  W.  F.  Phelps.     (Note  indorsed.) 

Apr.  20.  Sold  Henry  Ivison  1000  gal.  N".  O.  molasses,  at  ?  ^  ;  10  bbls.  A  sugar, 
2500  lb.,  at  ?  ^  ;  total,  $  ?  ;  received  in  payment  his  note  at  30  days  for  f  600,  and  his 
check  on  Park  Bank  for  the  balance,  %  ?  . 

Apr.  20.  Sold  David  Evans  150  bbls.  Michigan  apples,  at  $  ?  ;  175  bus.  S.  F.  pota- 
toes, at  ?  ^  ;  total,  ^  ?  ;  received  in  payment  his  note  at  30  days  for  ^  200,  and  his 
certified  check  on  Park  Bank  for  the  balance,  $  ?  . 

Apr.  21.  Paid  Philip  Pond,  per  check  on  Homeville  Bank,  in  full  of  my  note  of 
Apr.  6,  $  ?  . 

Apr.  21.  Sold  Benoni  Butler  200  bus.  S.  F.  potatoes,  at  ?  ;? ;  1250  gal.  N.  O.  molasses, 
at  ?  ;2^  ;  total,  $  ?  ;  received  in  payment  his  note  at  15  days  for  %  250,  and  his  certified 
check  on  State  Bank  for  balance,  $  ?  . 

Apr.  21.  Deposited  in  Homeville  Bank,  checks,  as  follows:  Orrin  Olson's,  ^?; 
Henry  Ivison's,  ^  ?  ;  David  Evans's,  $  ?  ;  Benoni  Butler's,  %  ?  ;  total,  $  ?  . 

Apr.  21.   Paid,  per  check  on  Homeville  Bank,  $16.48,  for  sundry  expenses. 

Apr.  23.   Received  Ray  Russell's  check  on  State  Bank  for  %  500,  on  account. 

Apr.  24.  Received  Quinn  &  Co.'s  check  on  Homeville  Bank  for  $  100,  in  full  of  their 
note  of  Apr.  14. 

Apr.  24.  Sold  William  Windom  15  bbls.  A  sugar,  3750  lb.,  at  ?  ^  ;  12  bbls.  B  sugar, 
3000  lb.,  at  ?  ^  ;  total,  $  ? ;  received  in  payment  his  note  at  10  days  for  $  150,  and  his 
check  on  Park  Bank  for  balance,  $  ?  . 

Apr.  26.  Received  William  Windom's  certified  check  on  Park  Bank  for  $  ?  in  pay- 
ment of  his  note  of  the  13th  inst. 


136 


PRACTICE  IN  MODERN  BOOKKEEPING 


Apr.  25.  Sold  Quinn  &  Co.  16  bbls.  A  sugar,  4000  lb.,  at  ?  ^  ;  12  bbls.  B  sugar, 
3000  lb.,  at  ?  ^  ;  total,  $  ?  ;  received  their  note  at  10  days  for  $275,  and  their  check  on 
Homeville  Bank  for  the  balance,  $  ?  . 

Apr.  26.  Redeemed  my  note  of  Apr.  14,  favor  of  Knight  &  King,  for  $  ?  ,  jDer  check 
on  Homeville  Bank,  favor  of  D.  L.  Kiehle.     (Note  indorsed.) 

Apr.  26.  Redeemed  my  note,  favor  of  Thomas  Tyler,  dated  Apr.  14,  for  $  500 ;  issued 
in  payment  a  new  note  for  $300,  at  15  days,  and  a  check  for  the  balance,  $  ?  . 

Apr.  26.  Deposited  checks  as  follows,  in  Homeville  Bank:  Ray  Russell's,  $500; 
Quinn  &  Co.'s,  $100;  William  Windom's,  $  ?  ;  William  Windom's,  $200;  Quinn  &  Co.'s, 
$  ?  ;  total,  $  ?  . 

Apr.  27.  Sold  John  Adams  15  bbls.  A  sugar,  3750  lb.,  at  ?  ^  ;  2500  gal.  N".  O. 
molasses,  at  ?  f  ;  total,  $  ?  ;  received  in  payment  his  note  at  30  days  for  $  1000,  and  his 
certified  check  on  Park  Bank  for  the  balance,  $  ?  . 

Apr.  27.  Sold  James  K.  Polk  50  bus.  E.  R.  potatoes,  at  ?  ^  ;  300  bus.  S.  F.  potatoes, 
at  ?  ^  ;  750  bus.  rye,  at  ?  )*  ;  total,  $  ?  ;  received  in  payment  his  note  at  20  days  for  $  300, 
and  his  certified  check  on  State  Bank  for  the  balance,  $  ?  . 

Apr.  28.   Paid,  per  check,  $  15.23  for  sundry  items  of  expense. 

Apr.  28.  Sold  Thomas  Lowry  50  bbls.  Michigan  apples,  at  $  ? ;  750  bus.  rye,  at  ?  ^^  ; 
2250  gal.  N.  O.  molasses,  at  ?^  ;  total,  $  ?  ;  received  his  check  on  Homeville  Bank  for 
the  amount.  1 

Apr.  28.  Deposited  checks  in  Homeville  Bank  as  follows :  John  Adams's,  $  ?  ;  James 
K.  Polk's,  $  ?  ;  Thomas  Lowry's,  $  ?  ;  total,  $  ?  . 


Inventory  of  Property,  Apr.  30,  19— 

1  mo's  Rent,  prepaid 

10     "      Insurance,  prepaid,                                      @  $6.25 

• 

30 
62 

50 

92 

50 

Th 

E.  Student's  Trial  Balance,  Apr.  14,  ^g— . 

List  I 

Face  of  Ledger 

Open  Accounts 

P. 

Balances 

? 

? 

Th.  E.  Student 

4017 

76 

? 

? 

Wheat 

211 

50 

? 
? 
? 

? 
? 
? 

Expense 

Sugar 

Insurance 

106 

901 

68 

75 

87 
75 

? 

? 

Molasses 

4436 

50 

? 

? 

Potatoes 

413 

75 

? 
? 
? 

? 

? 
? 

Apples 

Rye 

Cash 

818  75 
600 
3025 

? 
? 

? 
? 

Bills  Payable 
Bills  Receivable 

920  95 

1720 

? 

? 

? 
? 

Personal  Accounts  Payable 
Personal  Accounts  Receivable 

1582 

68 

6049 

88 

? 

? 

Homeville  Bank 

Equilibrium 

169589 

30348 

66 

30348 

66 

11787164 

11787 

64 

" 

M 

Note.  —  To  save  space  the  personal  accounts  are  here  combined  under  two  heads,  Personal 
Accounts  Payable  and  Personal  Accounts  Receivable. 


FOURTH  :SET 


137 


Th. 

E.  Student's  Trial  Balance,  April  30,  19—. 

List  I 

Face  of  Ledger 

Open  Accounts 

P. 

Balances 

9 

9 
? 

Th.  E.  Student 
Wheat 

4161 
13 

14 
50 

9 

? 

Expense 

100 

46 

'i 

? 

Sugar 

212 

51 

7 

9 

Insurance 

65 

62 

V 

? 

Molasses 

697 

50 

? 

V 

Potatoes 

89 

50 

9 

? 

Apples 

162 

50 

? 

9 

Rye 

60 

9 

? 

Cash 

6 

50 

9 

? 

Bills  Payable 

650 

? 

V 

Bills  Receivable 

3425 

? 

? 

Personal  Accounts  Payable 

6049 

88 

9 

9 

Personal  Accounts  Receivable 

1082 

68 

? 

? 

Homeville  Bank 

Equilibrium 

7416 

27 

30775 

66 

30775 

66 

12096 

53 

12096 

53 

Gerieral  Results,  April  I4,  19- 
Footing  of  Trial  Balance 


List  1 

2 

3                            4 

5 

6 

$30348.66 

$31777.75 

$33206.91           $34636.00 
Cash  on  Hand 

$36065.16 

$37494.25 

List  1 

2 

3                           4 

5 

6 

$30.25 

$42.75 

.     $55.25                 $67.75 
Cash  in  Bank 

$80.25 

$92.75 

List  1 

2 

3                          4 

5 

6 

$1695.89 

$1435.00 

$1174.14              $913.25 
Total  Footing  of  Inventory 

$652.39 

$391.50 

List  1 

2 

3                           4 

5 

6 

$7701.25 

$7982.12     ■ 

$8263.00             $8543.87 

$  8824.75 

$9105.62 

General  Results,  April  SO,  19- 
Footing  of  Trial  Balance 


List  1 
$30775.66 

2 

$32037.03 

3                           4 

$33298.51          $34559.88 

5 

$35821.36 

6 

$37082.73 

List  1 
$6.50 

2 

$19.00 

Cash  on  Hand 
3                          4 

$31.50                 $44.00 

5 

$  56.50 

6 

$69.00 

List  1 
$7416.27 

2 

$7530.39 

Cash  in  Bank 
3                          4 

$7644.57             $7758.69 

5 

$7872.87 

6 

$  7986.99 

138  PRACTICE  IN  MODERN  BOOKKEEPING 

Fifth  Set.  —  Dry  Goods.     Student  Sole  Proprietok 

The  Object  of  this  Set  is  to  afford  a  general  review  of  the  work  of  the 
preceding  sets,  and  to  give  additional  practice  in  the  entry  of  transactions 
involving  promissory  notes. 

The  pupil  will  consider  himself  the  proprietor  of  the  business,  will 
write  all  the  correspondence,  make  out  all  the  papers,  and  keep  the  books. 

Hereafter  the  bank  account  will  be  kept  in  the  check  book  only 
(page  104),  and  funds  in  bank  will  be  considered  part  of  the  cash  on 
hand.  Hence  cash  is  credited,  instead  of  the  bank,  when  a  check  is 
issued;  and  no  journal  entry  is  made  of  a  deposit. 

Characteristics.  —  Buying  and  selling  dry  goods  for  cash,  on  personal  credit,  and  on 
promissory  notes ;  receiving  and  paying  cash  on  personal  account,  and  on  notes ;  meeting 
with  a  loss  by  fire,  and  closing  the  books  with  a  decreased  capital. 

Business  Forms  Used.  —  Bills  of  parcels,  receipts,  deposit  tickets,  checks,  promissory 
notes,  bank  drafts,  business  st^ements,  financial  statements,  and  balance  sheets. 

Books  Used.  —  Journal-daybook,  ledger,  receipt  book,  check  book,  bank  pass  book, 
note  book,  bill  book,  cash  book,  stock  record  book,  and  trial  balance  book. 

Ledger  Titles  and  Number  of  Lines  Each  will  Require.  —  Th.  E.  Student,  11;  Adam 
Brown,  8 ;  Byron  Cook,  7 ;  C.  C^  Dunn,  7 ;  Cash,  20 ;  Dennis  Eagan,  6 ;  Edward  Forster, 
6;   Merchandise,  24;    Store   and   Fixtures,  I'O;  Bills  Payable,  23;   George  Hunter,  4; 
Irwin  Janney,  7 ;  Lord  &  Taylor,  N.Y.,  6 ;  Charles  Adams,  Boston,  6 ;  H.  Smith  &  Co., 
N.Y.,  4;  Seth  Tuttle,.N'.Y.,  4;  George  Hunter,  Chicago,  4;  Otto  Miller,  Chicago,  4; 
James  King  &  Co.,  N.Y.,  6;  Henry  Irving,  Chicago,  6;  James  Rich,  Canton,  4;  Murray 
James,  4;  George  Clark,  4 ;  Harry  Curtiss,  4 ;  George  Huhn,  4;  David  Ford,  4;  Henry 
Jones,  4;    Aaron  Bull,  4;    Myron  Dale,  4;  Simon  Jewell,  4;  Silas  Smith,  4;  Thomas 
Catlin,  4 ;  Jonas  Bell,  4 ;  Samuel  Ladd,  4 ;  Bills  Receivable,  21 ;  Insurance,  7  ;  Expense,  8 
Paul  Quinn,  4 ;  Oscar  Sawyer,  4 ;  Neill  Odium,  4 ;  Lemuel  Mott,  4 ;  Mark  Nichols,  7 
Cash  (2d),  22;  King  &  Co.,  6;  Thomas  Utley,  6;  Merchandise  (2d),  15;  Premium,  8 
Remittances,  12;  Loss  and  Gain,  12;  Balance,  18. 

DIRECTIONS  FOR  WORKING  THE  FIFTH  SET 

1.  Complete  all  the  work  of  each  day  before  commencing  the  work  of  any  succeeding 
day,  as  follows :  (a)  Make  out  bills  of  parcels,  both  incoming  and  outgoing.  (&)  Write 
in  the  receipt  book  receipts  for  money  received,  and  on  blanks  for  money  paid,  (c)  Write 
in  the  check  book  all  checks  issued,  and  on  blanks  all  checks  received,  (f?)  Write  in  the 
note  book  all  notes  issued,  and  on  blanks  all  notes  received,  (e)  Record  in  the  bill 
book  all  notes  issued  and  received,  and  check  in  the  bill  book  all  notes  redeemed  and 
disposed  of.  (/)  Prepare  deposit  tickets  and  make  corresponding  entry  in  the  check 
book  and  bank  pass  book,  {g)  Write  in  the  cash  book  the  receipts  and  disbursements 
of  money  (including  checks).    (Ji)  Enter  in  the  stock  record  book  each  purchase  and  sale. 

2.  Record  in  the  journal-daybook  each  day's  business  to  the  14th  day  of  the  month 
and  post  to  the  ledger. 

3.  Take  trial  balance,  and  prepare  inventory. 

4.  Close  ledger  in  current  form,  make  business  and  financial  statements  and  balance 
sheet  of  the  business  for  the  two  weeks. 

5.  Finish  the  month's  business  in  the  same  order,  but  close  the  ledger  in  final 
form. 


FIFTH  SET 


139 


Buying 

J  Price  Lists 

Articles 

Per 

1 

2 

3 

4 

5 

6 

Amoskeag  Prints 

yd. 

6^ 

6i^ 

6i^ 

6|^ 

79 

7\9 

American       " 

(( 

6i^ 

6|^ 

7i^ 

7i^ 

7\9 

7\9 

Cotton  Flannel 

- 

10^ 

lOi^ 

lOi^ 

lOf^ 

119 

\\\9 

Manchester  Gingham 

(4 

^9 

5|f 

69 

6\9 

H9 

6\9 

^Merrimac  Prints 

(i 

^9' 

6|^ 

79 

1\9 

7\9 

7\9 

Paper  Cambric 

" 

hf 

oif 

^9 

h\9 

Q9 

Qi9 

Scotch  Gingham 

'' 

iDf 

15^^ 

Vo\9 

Vo\9 

1Q9 

16i^ 

Wamsutta  Muslin 

" 

S9 

8ii^ 

^\9 

m 

99 

H9 

Washington  Cambric 

" 

Hf 

43^ 

5<^ 

5k  9 

5\9 

H9 

York  Denims 

" 

12i^ 

12|<* 

\?>9 

m9 

IH9 

m9 

Selling  Price  Lists 


Articles 

Per 

1 

2 

3 

4 

5 

6 

Amoskeag  Prints 

yd. 

7^9 

7\9 

%9 

^\9 

m 

8f^ 

American       " 

(( 

S9 

^\9 

^\9 

^\9 

99 

^\9 

Cotton  Flannel 

u 

129 

V^\9 

mf 

m9 

139 

\3\9 

Manchester  Gingham 

it 

79 

7\9 

7\9 

7\9 

S9 

^\f 

Merrimac  Prints 

ii 

S9 

^9 

^\9 

^\9 

99 

K9 

Paper  Cambric 

« 

6\9 

H9 

79 

7\9 

7\9 

7\9 

Scotch  Gingham 

(( 

\%f 

\^\9 

\%\9 

\^\9 

\99 

\9\9 

Wamsutta  Muslin 

a 

9\9 

n9 

lOj* 

\^\9 

y^\f 

lOf^ 

Washington  Cambric 

a 

Q9 

^\9 

^\9 

6\9 

79 

7\9 

York  Denims 

ii 

VS\9 

\h\9 

\69 

16i^ 

\6\9 

\6\9 

MEMORANDA  OF   TRANSACTIONS 

Homeville,  Tuesday,  May  1,  19 — .  Th.  E.  Student  commenced  business  this  day  with 
the  following  resources  and  liabilities.  Resources:  cash  in  safe,  $25;  in  Homeville 
Bank,  $3975;  (total,  Cash  Dr.,  $4000);  store  and  fixtures,  lot  No.  47  Main  St.,  with 
building,  $7500;  due  me  on  account  from  Adam  Brown,  $275;  Byron  Cook,  $315.90; 
C.  C.  Dunn,  $460.18;  Dennis  Eagan,  $287.50;  total,  $12,838.58.  Liabilities:  I  owe  on 
account,  Edward  Forster,  $190.25;  George  Hunter,  $217.50;  Henry  Irving,  Chicago, 
$215.25;  Irwin  Janney,  $270;  total,  $893;  net  capital,  $?  . 

May  1.  Procured,  per  check,  insurance  of  S.  Morris,  Agent,  for  one  year;  on  build- 
ing and  fixtures,  $2500  at  1^%,  $  ?  ;  on  Mdse.,  $3000  at  2%,  $  ?  ;  total,  $  ?  .     (Cash  Cr.) 

May  1.  Bought  of  Lord  &  Taylor,  New  York,  on  my  note  at  10  days,  6275  yds.  Amos- 
keag prints,  at  ?  f. 

Note.  —  Notes  in  this  set  are  drawn  without  grace  unless  otherwise  specified. 

May  1.  Bought  of  Charles  Adams,  Boston,  on  my  note  at  15  days,  5428  yds.  York 
denims,  at  ?  9- 

May  1.  Bought  of  H.  Smith  &  Co.,  New  York,  on  my  note  at  30  days,  15,225  yds.  paper 
cambric,  at  ?  ^ ;  10,250  yds.  Washington  cambric,  at  ?  ^ ;  total,  $  ?  . 

May  2.   Sold  Adam  Brown,  for  cash,  175  yds.  York  denims,  at  ?  9. 

May  2.'  Bought  of  Seth  Tuttle,  New  York,  on  my  note  at  15  days,  1874  yds.  Merrimac 
prints,  at  ?  J* ;  600  yds.  cotton  flannel,  at  ?  ^ ;  total,  $  ?  . 


140  PRACTICE   IN  MODERN  BOOKKEEPING 

May  3.  Sold  Thomas  Utley,  on  credit,  120  yds.  ]Merrmiac  prints,  at?f;  150  yds. 
cotton  flannel,  at  ?  ^ ;  total,  %  ?  . 

May  4.  Sold  James  Rich,  Canton,  1246  yds.  paper  cambric,  at  ?  f ;  330  yds.  Amos- 
keag  prints,  at  ?  J^ ;  total,  %  ?  ;  'received  his  note  at  10  days  for  the  amount. 

May  4.  Sold  Murray  James  750  yds.  paper  cambric,  at  ?  f ;  394  yds.  Amoskeag 
prints,  at  ?  ^  ;  276  yds.  York  denims,  at  ?  f ;  total,  $  ?  ;  ,received  his  note  at  12  days 
for  $50,  and  his  check  on  State  Bank  for  the  balance,  ^  ?  . 

May  4.    Paid  cash  for  sundry  items  of  expense,  f  23.75. 

May  4.  Bought  of  George  Hunter,  Chicago,  12,525  yds.  Wamsutta  muslin,  at  ?  ^ ; 
gave  in  payment  my  note  at  one  month  for  $  500 ;  certified  check  on  Homeville  Bank 
for  the  balance,  %  ?  . 

.  May  4.   Sold  Walter  Ellis,  for  cash,  350  yds.  Amoskeag  prints,  at  ?  ^ ;   276  yds. 
York  denims,  at  ?  ^ ;  total,  $  ?  . 

May  5.  Bought  of  Otto  Miller,  Chicago,  4375  yds.  Amoskeag  prints,  at  ?  ^ ;  3950  yds. 
paper  cambric,  at?^;  2970  yds.  York  denims,  atV^-;  2500  yds.  Wamsutta  muslin,  at 
?  f ;  1875  yds.  Scotch  gingham,  at  ?  /';  total,  $  ?  ;  gave  in  payment  my  note  at  16  days 
for  $  1000,  and  my  certified  check  for  the  balance,  ^  ?  . 

May  5.  Exchanged  notes  with  Edward  Forster  for  his  accommodation,  each  drawn 
at  6  days  from  date  for  $500.y^ 

May  5.  Sold  Adam  Brown  750  yds.  paper  cambric,  at  ?  ^ ;  received  his  check  on 
Marine  Bank  for  $  30 ;  balance  on  credit,  f  ?  . 

May  5.  Sold  Paul  Quinn,  on  credit,  478  yds.  Wamsutta  muslin,  at?;*;  516  yds. 
paper  cambric,  at  ?  ^ ;  total,  $  ?  . 

May  5.  Deposited  in  Homeville  Bank  checks  as  follows :  ^Murray  James's,  $  ?  ;  Adam 
Brown's,  $  ?  ;  currency,  .^50;  total,  $  ?  .     (Make  entry  in  check  book  only.) 

May  7.  Bought  of  James  King  &  Co.,  X.  Y.,  3750  yds.  Scotch  gingham,  at  ?  <* ; 
remitted  my  note  at  8  days  for  ^  250,  and  my  certified  check  for  the  balance,  ^  ?  . 

May  7.  Bought  of  Henry  Irving,  Chicago,  4250  yds.  Manchester  gingham,  atVf; 
remitted  in  payment  my  note  at  10  days  for  |150,  and  my  check  for  the  balance,  $  ?  . 

May  7.  Bought  of  Irwin  Janney  9875  yds.  American  prints,  at  ?  ^ ;  gave  him  my 
check  for  $350;  balance  on  credit,  $  ?  . 

May  7.  Sold  George  Clark  3250  yds.  Amoskeag  prints,  at  ?  f ;  1490  yds.  American 
prints,  at  ?  ^ ;  total,  %  ?  ;  received  his  note  at  5  days  for  $  150,  and  his  check  on  Park 
Bank  for  the  balance,  $  ?  . 

May  8.  Sold  Harry  Curtiss  2427  yds.  Wamsutta  muslin,  at  ?  ^ ;  1590  yds.  York 
denims,  at  ?  ,<* ;  total,  $  ?  ;  received  his  note  at  6  days  for  $250,  and  his  check  on  Home- 
ville Bank  for  the  balance,  $  ?  . 

May  8.   Sold  James  Bell,  for  cash,  540  yds.  Scotch  gingham,  at  ?  ^. 

May  8.   Received  from  Adam  Brown,  on  account,  $  100,  per  check  on  Marine  Bank. 

May  8.  Sold  C.  C.  Dunn  470  yds.  Wamsutta  muslin,  at  ?  f ;  290  yds.  Manchester 
gingham,  at  ?  ^ ;  304  yds.  paper  cambric,  at  ?  p  ;  total,  $  ?  ;  received  his  check  on  State 
Bank  for  $50 ;  balance  on  credit,  $  ?  . 

May  9.  Sold  Oscar  Sawyer,  on  credit,  325  yds.  Amoskeag  prints,  at  ?  ^ ;  460  yds. 
Washing-ton  cambric,  at  ?  ^ ;  490  yds.  paper  cambric,  at  ?  ,<* ;  175  yds.  American  prints,  at 
?  ^ ;  250  yds.  York  denims,  at  ?  ^ ;  175  yds.  Scotch  gingham,  at  ?  ^^^ ;  total,  $  ?  . 

May  9.  Sold  Byron  Cook  425  yds.  Manchester  gingham,  at  ?  ^ ;  875  yds.  Amoskeag 
prints,  at?  ^;  total,  $?  ;  received  his  check  on  Homeville  Bank  for  $75;  balance  on 
credit,  $  ?  . 

May  9.  Remitted  to  Lord  &  Taylor,  N.Y.,  my  new  note  at  12  days,  dated  May  11 ; 
for  $175,  and  my  certified  check  for  the  balance  of  my  note  of  May  1,  $  ?  .  (Debit 
Remittances  account.) 


FIFTH  SET 


141 


May  9.  Deposited  checks  as  follows :  George  Clark's, -$?  ;  Harry  Curtisy's,  ^  ?  ;  Adam 
BrowQ's,  $100;    C.  C.  Dunn's,  $50;  Byron  Cook's,  $75;  currency,  $100;  total,  $  V  . 

May  10.  Sold  George  Huhn  175  yds.  Scotch  gingham,  at  ?J^;  475  yds.  American 
prints,  at  ?  ^;  260  yds.  York  denims,  at  ?  ^;  150  yds.  Amoskeag  prints,  at  V  ^;  950  yds. 
paper  cambric,  at  ?  ^ ;  575  yds.  Manchester  gingham,  at  ?  f ;  230  yds.  Merrimac  prints, 
at  ?  ^ ;  total,  $  ?  ;  received  his  note  at  30  days  for  $200,  and  his  check  on  State  Bank  for 
the  balance,  $  ?  . 

May  10.   Sold  James  King,  for  cash,  1250  yds.  Manchester  gingham,  at  ?  ^. 

May  10.  Sold  David  Ford  2560  yds.  Wamsutta  muslin,  at  ?  <* ;  1509  yds.  American 
[)rints,  at  ?  ^ ;  350  yds.  Scotch  gingham,  at  ?  ^;  total,  $  V  ;  received  his  note  at  8  days  for 
$225,  and  check  on  Homeville  Bank  for  balance,  $  ?  . 

May  11.  Edward  Forster  takes  up  and  returns  my  note  of  the  5th  inst.,  and  I  sur- 
render his  of  same  date  and  amount,  $  ?  . 

May  11.  Sold  Xeill  Odium,  on  credit,  675  ^'ds.  Wamsutta  muslin,,  at  ?  ^ ;  276  yds. 
Scotch  gingham,  at  ?  ^;  398  yds.  Amoskeag  prints,  at  ?  ^;  190  yds.  York  denims,  at  ?  f. 

May  12.  Received  George  Clark's  new  note  at  10  days  for  $50,  and  his  certified 
check  on  Park  Bank  for  $100,  in  payment  of  his  note  of  May  7  for  $  ?  . 

May  12.  Sold  Lemuel  Mott,  on  credit,  350  yds.  York  denims,  at  ?  J* ;  197  yds.  paper 
cambric,  at  ?  ^;  497  yds.  Amoskeag  prints,  at?  f;  375  yds.  Scotch  gingham,  at  ?  ^;  560 
yds.  Wamsutta  muslin,  at  ?  ^;  290  yds.  American  i)rints,  at  ?  f ;  total,  $  ?  . 

May  12.  Sold  Mark  Nichols  645  yds.  Amoskeag  prints,  at  ?  ^ ;  490  yds.  Wamsutta 
muslin,  at  V  jz^ ;  245  yds.  York  denims,  at  ?  ^ ;  270  yds.  Scotch  gingham,  at  ?  ;* ;  378  yds. 
paper  cambric,  at  ?  ^ ;  225  yds.  Merrimac  prints,  at  ?  ^ ;  160  yds.  cotton  flannel,  at  ?  ^ ; 
total,  $  ?  ;  received  his  check  on  Homeville  Bank  for  $150;  balance  on  credit,  $  ?  . 

May  12.  Deposited  George  Huhn's  check,  $  ?  ;  D.  Ford's  check,  $  ?  ;  George  Clark's 
check,  $100 ;  Mark  Nichols's  check,  $  150;  currency,  $  100 ;  total,  $  V  . 

May  12.   Received  from  Lord  &  Taylor,  N.Y.,  my  note  of  May  1.    (Remittances  Cr.) 

Inventory  of  Unsold  Property,  May  12,  19 — 


?  yds.  Amoskeag  Prints 

?  f 

? 

?     "      American       " 

-if 

9 

?    "     Cotton  Flannel 

U 

? 

?     "     Manchester  Gingham 

■?  9' 

? 

?     "     Merrimac  Prints 

-if 

? 

?     "      Paper  Cambric 

If 

? 

?    "     Scotch  Gingham 

?^ 

9 

?     "     Wamsutta  Muslin 

If 

'} 

?     "      Washington  Cambric 

U 

9 

?     "     York  Denims 

If 

? 

? 

Store  &  Fixtures,  present  value 

7750 

Insurance,  estimated  value 

93 

50 

? 

MEMORANDA   OF   TRANSACTIONS,   Continued 

Homeville,  Monday,  May  14,  19 — .  Received  from  James  Rich,  Canton,  exchange  on 
Homeville,  in  full  of  his  note  of  May  4,  19 — ,  f or  $  ?  . 

May  14.  Received  from  Harry  Curtiss  his  check  on  Homeville  Bank  in  full  payment 
of  his  note  of  May  8. 

May  14.   Received  from  Thomas  Utley  $  15  on  account,  per  check  on  Park  Hank. 


142  PRACTICE  IN  MODERN  BOOKKEEPING 

May  14.    Paid  %  16.14  in  cash  for  sundry  items  of  expense. 

May  14.  Sold  Aaron  Bull  976  yds.  American  prints,  at  ?  ^ ;  1000  yds.  paper  cambric, 
at  ?  ^ ;  1500  yds.  Washington  cambric,  at  ?  f ;  487  yds.  Wamsutta  muslin,  at  ?  ^ ;  396 
yds.  Manchester  gingham,  at  ?  ^ ;  189  yds.  York  denims,  at  ?  ^ ;  total,  $  ?  ;  received  his 
note  at  30  days  for  $  125 ;  his  note  at  45  days  for  ^  100,  and  his  check  on  HomeviUe  Bank 
for  the  balance,  %  ?  . 

May  14.  Deposited  in  Homeville  Bank,  draft  and  checks  as  follows :  James  Rich's, 
$  ?  ;  Harry  Curtiss's,  $  ?  ;  Thomas   Utley's,  $  ?  ;  Aaron  Bull's,  $  ?  ;  total,  f  ?  . 

May  14.  Purchased  at  Homeville  Bank,  per  check,  draft  on  N.  Y.  for  %  250,  at  \  % 
premium,  and  remitted  to  James  King  &  Co.,  N.  Y.,  for  my  note  of  May  7 ;  premium, 
k  ?  ;  total,  $  ?  .     (Remittances  Dr.) 

May  15.  Remitted  to  Seth  Tuttle,  N.  Y.,  my  new  note  at  30  days  from  May  17,  for 
%  100,  and  my  certified  check  for  the  balance  of  my  note  of  May  2,  $  ?  . 

May  15.  Bought  of  Homeville  Bank,  per  check,  draft  on  Boston  for  $  ?  ,  at  par,  and 
remitted  the  same  to  Charles  Adams,  Boston,  in  payment  of  my  note  of  May  1,  his  favor. 

May  15.  Remitted  to  Henry  Irving,  Chicago,  my  new  note  at  30  days  from  May  17, 
for  f  50,  and  exchange  on  Chicago  for  the  balance  of  my  note  of  May  7,  $  ?  ,  bought  of 
Homeville  Bank,  per  check,  at,i%  premium;  premium,  f  ?  ;  total,  f  ?  . 

May  16.  Received  $  50  of-^lurray  James,  per  check  on  State  Bank,  in  full  payment 
of  his  note  of  May  4.  ^^ 

May  16.   Drew  out,  per  check,  for  personal  use,  $  75. 

May  16.  Sold  Henry  Jones,  on  his  note  at  one  month,  450  yds.  Scotch  gingham,  at 
?  ^ ;  750  yds.  Washington  cambric,  at  ?  ^ ;  total,  $  ?  . 

May  16.   Deposited  in  Homeville  Bank,  Murray  James's  check,  $  ?  . 

May  17.  Sold  Myron  Dale  590  yds.  paper  cambric,  at  ?  ^ ;  748  yds.  Scotch  gingham, 
at  ?  )^ ;  total,  %  ?  ;  received  in  payment  his  note  at  9  days  for  ^  100,  and  his  check  oh 
State  Bank  for  the  balance,  %  ?  . 

May  17.   Deposited  Myron  Dale's  check  in  Homeville  Bank,  $  ?  . 

May  18.  Received  from  James  King  &  Co.  my  note  of  May  7,  canceled  (Remit- 
tances Cr.) . 

May  18.  Sold  Simon  Jewell  590  yds.  paper  cambric,  at  ?^;  2560  yds.  Wamsutta 
muslin,  at  ?  ^ ;  1595  yds.  American  prints,  at  V  ^ ;  total,  ^  ?  .  Received  his  note  at  one 
month  for  $  250,  and  his  certified  check  on  Homeville  Bank  for  the  balance,  $  ?  . 

May  18.  Received  David  Ford's  new  note  for  $  100,  at  10  days,  and  his  certified 
check  on  Homeville  Bank  for  ^  125,  in  full  payment  of  his  note  of  May  10,  for  $  ?  . 

May  18.  Deposited  Simon  Jewell's  check  for  ^  ?  ,  and  David  Ford's  check  for  $  ?  ,  in 
Homeville  Bank  ;  total,  ^  ?  . 

May  19.   Received  from  Seth  Tuttle,  N.  Y.,  my  note  of  May  2,  canceled. 

May  19.  Sold  Silas  Smith  1250  yds.  American  prints,  at  ?  j^^ ;  1500  yds.  Washington 
cambric,  at  ?  ^ ;  total,  %  ?  ;  received  his  certified  check  on  Park  Bank  for  the  amount. 

May  19.   Received  from  Charles  Adams,  Boston,  my  note  of  May  1,  canceled. 

May  19.  Sold  Thomas  Catlin  1305  yds.  paper  cambric,  atl f;  1218  yds.  Washington 
cambric,  at  ?  ^ ;  total,  .|  ?  ;  received  his  note  at  30  days  for  $  125,  and  his  check  on 
Homeville  Bank  for  the  balance,  $  ?  . 

May  19.    Received  from  Henry  Irving,  Chicago,  my  note  of  May  7,  canceled. 

May  19.  Deposited  Silas  Smith's  check  for  f  ?  ,  and  Thomas  Catlin's  check  for  $  ?  , 
in  Homeville  Bank ;  total,  $  ?  . 

May  21.  Remitted  to  Otto  Miller,  Chicago,  my  note  at  30  days  from  May  21  for 
$  500,  and  Chicago  exchange  for  the  balance  of  my  note  of  May  5,  ^  ?  ,  bought  per  check, 
at  \  %  premium ;  premium,  $  ?  ;  total,  $  ?  . 

May  21.   Bought  of  Lord  &  Taylor,  New  York,  6247  yds.  Amoskeag  prints,  at  ?^; 


FIFTH  SET  .  143 

4960  yds.  York  denims,  d^tl  f;  totalj  ^  ?  ;  remitted  in  payment  my  note  at  one  month  for 
$  500 ;  and  exchange  on  Xew  York  bouglit  at  par,  per  check,  for  the  balance,  $  ?  . 

May  21.  Remitted  to  Lord  &  Taylor,  N.  Y.,  exchange  on  N.  Y.  for  $  ?  ,  bought, 
per  check,  at  \  %  premium,  for  my  note  of  May  11,  $  ?  ;  premium,  $  ?  ;  total,  $  ?  . 

May  22.  Sold  Jonas  Bell  71)8  yds.  York  denims,  at  ?  j^  ;  985  yds.  Washington  cam- 
bric, at  ?  )z^  ;  1050  yds.  Manchester  gingham,  at  ?  ^  ;  1275  yds.  American  prints,  at  ?  ^  ; 
total,  $  ?  ;  received  his  check  on  Homeville  Bank  for  the  amount  of  the  bill. 

May  22.   Paid  cash  for  sundry  items  of  expense,  f  18.75. 

May  22.    Received  (ieorge  Clark's  check  on  Park  Bank  for  his  note  of  May  12,  $  ?  . 

May  22.  Bought  of  Charles  Adams,  Boston,  2500  yds.  Scotch  gingham,  at  ?  ^  ; 
5250  yds.  Manchester  gingham,  at  ?  ^  ;  total,  %  ?  ;  remitted  to  him  my  note  at  30  days 
for  $  400,  and  my  certified  check  for  the  balance,  %  ?  . 

May  22.   Deposited  Jonas  Bell's  check,  $  ?  ,  and  George  Clark's  check,  |  ?  ;  total,  $  ?  . 

May  23.    Received  from  Otto  Miller,  Chicago,  my  note  of  May  5. 

May  23.  Sold  King  &  Co.  on  account,  970  yds".  Washington  cambric,  afi  f  ;  350  yds. 
Scotch  gingham,  at  ?  ^  ;  total,  $  ?  . 

May  24.  Sold  Samuel  Ladd  490  yds.  Amoskeag  prints,  at  ?  J^  ;  3576  yds.  paper  cam- 
bric, at  V  J*  ;  986  yds.  Wamsutta  muslin,  at  ?  ^  ;  total,  $  ?  ;  received  his  check  on  Home- 
ville Bank  in  full  payment. 

May  24.   Sold  King  &  Co.,  on  credit,  1260  yds.  York  denims ;  750  yds.  American  prints. 

May  24.   Deposited  Samuel  Ladd's  check,  f  ?  ,  in  Homeville  Bank. 

May  25.    Received  from  Lord  &  Taylor,  N.  Y.,  my  note  of  May  11. 

May  25.   My  store  and  my  stock  of  goods  were  entirely  destroyed  by  fire  last  night. 

Note.  — This  record  should  be  made  in  the  journal,  if  the  books  can  be  reached,  otherwise  a 
memorandum  should  be  made  for  future  reference. 

May  26.   Received  Myron  Dale's  check  on  State  Bank,  for  note  of  May  17,  $  ?  . 

May  26.   Deposited  Myron  Dale's  check  in  Homeville  Bank,  f  ?  . 

May  26.   Remitted  to  XL  Smith  &  Co.,  N.  Y.,  my  certified  check  for  my  note  of  May  1. 

May  28.   Drew  out  for  personal  use,  per  check,  $  100. 

May  28.   Paid  cash,  ^  35.40,  for  sundry  items  of  expense. 

May  28.   Received  David  Ford's  check  on  Homeville  Bank,  for  his  note  of  May  18,$?. 

May  29.   Paid  Edward  Forster,  on  account,  per  check,  %  125. 

May  29.   Received  $  175,  per  check  on  Park  Bank,  of  Dennis  Eagan,  on  account. 

Mav  29.    Deposited  David  Ford's  check,  $  ?  ,  and  Dennis  Eagan 's  check,  $  ? ;  total,  $  ? . 

May  31.    Received  from  FL  Smith  &  Co.,  N.  Y.,  my  note  of  May  1. 

May  31.  The  fire  of  May  24  having  entirely  consumed  my  store  and  Mdse.  therein, 
the  insurance  company  has  settled  the  loss  by  paying  cash  for  the  amount  of  insur- 
ance on  the  building,  $  ?  ,  and  for  the  value  of  the  Mdse.  at  cost  as  shown  by  my  books, 
as  follows :  ?  yds.  Amoskeag  prints,  at  ?  ^-;  ?  yds.  American  prints,  at  ?  ^  ;  ?  yds.  cotton 
flannel,  at  ?  ^  ;  ?  yds.  Manchester  gingham,  at  ?  ^  ;  ?  yds.  Merrimac  prints,  at  ?  ^  ;  ?  yds. 
paper  cambric,  at  ?  ^  ;  ?  yds.  Scotch  gingham,  at  ?  J^  ;  ?  yds.  Wamsutta  muslin,  at  ?  j*  ; 
?  yds.  Washington  cambric,  at  ?  ^  ;  ?  yds.  York  denims,  at  ?  ^  ;  total,  $  ?  ;  received  the' 
company's  check  in  full,  for  store,  $  ?  ;  for  Mdse.,  |  ?  ;  total,  $  ?  . 

Note.  —  Having  kept  such  a  complete  and  correct  record  of  my  business  as  shown  by  my  books 
of  account,  which  have  been  taken  from  my  safe,  I  am  able  to  make  a  definite  and  reliable  state- 
ment of  the  extent  of  my  loss,  enabling  the  insurance  adjuster  to  settle  with  me  on  favorable  terms,^ 
and  without  delay. 

Inventory  of  Property  on  Hand,  May  31,  19— 
Lot  No.  47  Main  St.,  valued  at .        $3000 


144 


FEACTICE   IN  MODERN  BOOKKEEPING 


Form  of  Trial 


Ledger  Titles 

r 

May  5,  19— 

May  12,  10—      1 

May  19,  19— 

Th   E   Student 

893 
323 
315 
460 
4197 
287 

4751 
7500 

655 

97 
23 
27 

78 

75 
90 
18 
24 
50 

31 

74 

50 
75 

60 
95 

12838  581 

893 
323 
411 
544 
5540 
287 

6189 

7500 

876 

350 
1530 

97 
23 
27 

78 
168 
173 
243 

248 

75 
28 
89 
28 
50 

41 

50 

74 

50 
75 
60 
95 
08 
11 
28 
24 

12838 

130 

75 

50 

1861 

190 
3184 

5034 
217 
911 
650 
215 

150 

58 

25 

12 

31 
50 

88 

25 

■ 
75 

193 

336 

494 

4790 

287 

3604 
7750 
1260 

1806 

93 
16 

27 

78 

168 

173 

93 

248 

1 

75 

28 
89 
72 
50 

29 

31 

74 

50 
14 
60 
95 
08 
11 
28 
24 
50 

12766 

1202 

190 
1391 

4307 
217 
561 
630 
215 

15 

80 

95 

25 
70 

81 
50 

88 
74 
25 

30 

913 

190 

478 

4459 
217 
270 

215 

25 

25 

28 

„ 

50 
25 

Cook,  Byron 

Dunn   C    C 

Cash 

Eagan,  Dennis 

Forster,  Edward 

IVTerchandise 

Store  &  Fixtures 

Bills  Payable 

Hunter,  George      .     .     .     .\   . 

.Tannev  Irwin   ....     ._^. 

Bills  Receivable     .     .     .    i    . 
Irviner.  Henrv 

TTtlev  Thomas 

Ouinn.  Paul 

Sawyer,  Oscar 

Odium,  NeiU 

Nichols,  Mark  ....... 

Mott,  Lemuel 

Preminm 

King  &  Co . 

Real  Estate 

Bohn  &  Co 

Stevens,  Henry 

Butler,  H.  C 

Burt  &  Phelps 

Store  Fixtures 

Bovey  &  Co 

Lord,  L.  C 

Home  M'f 'g  Co 

Phelps,  W.F 

Walker  &  Co 

Burt  &  Phelps 

GoodW^ill 

19612 

42 

19612 

42 

25507 

89 

25507 

89 

•     • 

21499 

88 

21499 

88 

•     • 

FIFTH  AND   SIXTH  SETS* 


145 


Balance  Book 


May  ai,  19— 

June  9,  19— 

June  10,  19— 

June  2'S,  19— 

June  30,  19— 

175 

12766 

80 

3109 

88 

13784 

99 

3109  88 

13784  99 

10896 

47 

10896 

47 

193 

75 

358 

75 

358:75 

358 

75 

358 

75 

330 

28 

461 

28 

461 

28 

461 

28 

461 

28 

494 

Sd 

634 

89 

634 

89 

634 

89 

11711 

11 

4140 

30 

8145 

51 

3734 

75 

9600 

4256 

50 

6529 

05 

1647 

78 

9054 

64 

1835 

28 

287 

50 

175 

112 

50 

505 

505 

205 

125 

190 

25 

65 

25 

305 

72 

30 

5262 

86 

5763 

59 

5381 

1864 

7(1 

7016 

80 

315a 

45 

6029 

2253 

55 

6117 

50 

6531 

80 

7750 

2500 

3657 

81 

5707 

81 

500 

7750 

900 

8065 

25 

1542 

13 

7317 

13 

1617 

13 

7357 

38 

217 

50 

305 

217 

50 

305 

217 

50 

305 

217 

50 

305 

217 

50 

561 

561 

88 

485 

561 

88 

1806 

74 

880 

74 

926 

200 

1001 

451 

550 

450 

6435 

39 

550 

215 

25 

215 

25 

100 

215 

25 

75 

115 

25 

93 

50 

145 

145 

138 

96 

138 

96 

132 

92 

70 

29 

18 

57 

75 

24 

48 

27 

60 

15 

12 

60 

12 

60 

78 

95 

263 

95 

263 

95 

263 

95 

263 

95 

168 

08 

168 

08 

18 

168 

08 

57 

75 

110 

33 

173 

11 

173 

11 

473 

11 

473 

11 

93 

28 

93 

28 

297 

28 

100 

248 

24 

248 

24 

3 

63 

1 

25 

2 

5 

75 

5 

75 

376 

50 

376 
6000 

50 

175 

376 
6000 

50 

300 

76 

6000 

247 

50 

300 

6000 

250 

33134 

12 

J3134 

12 

.  . 

. 

. 

. 

260 

117 

. 

235 

250 

53 

. 

75 

•  • 

700 

700 

72 

30 

700 

700 

650 

28704 

82 

28701  82 

.  . 

247 

230 

125 

* 

• 

1 

1475 

460 
197 

28 

2725 
245 

2725 

32715 

87 

32715 

87 

. 

.  . 

. 

• 

•  • 

• 

•  • 

• 

143 

98 

143 

1000 

26364'9^ 

26364 

32404 

35 

32404 

35 

146 


PRACTICE  IN  MODERN  BOOKKEEPING 


List  1 
May  12      $3679.28 
«     31      17570.81 


List  1 
May  12    $25507.89 
"     31     $33134.12 


General  Results,  Fifth  Set 

Cash  on  Hand 
2  3  4 

$3623.59  $3567.83  $3512.12 


$7553.05 


$7535.14 


$7517.36 


Footing  of  Trial  Balance 

2  3  4 

$25822.71        $26137.26        $26452.05 
$33553.34        $33972.15        $34391.32 


Inventory  of  Mdse.  on  Hand,  May  12,  19 — 
List  12  3  4 

$3604.29  $3733.04  $3861.74  $3990.49  ^ 

Th.  E.^^Student's  Net  Capital,  May  31,  19 
List  1  2  r^         3  4 

$10675.11  $10675.24    ^     $10675.08  $10675.18  $ 


5 

6 

$3456.40 

$3400.71 

$7499.54 

$7481.76 

5 

6 

$26766.58 

$27081.40 

$34810.24 

$35229.43 

5 

6 

H119.20 

$4247.94 

5 

6 

10675.13 

$10675.24 

Sixth  Set.  —  Furniture  Business.     Student  Sole  Proprietor 

Object  of  the  Set.  —  The  object  of  this  sixth  set  is  to  teach  the  making- 
of  drafts  and  acceptances,  and  the  method  of  recording  them  in  the 
various  books. 

The  transactions  in  this  set  are  selected  and  arranged  so  as  to  present 
drafts  and  acceptances  in  almost  every  conceivable  manner  and  condition. 
The  pupil  vrill  in  turn  become  drawer,  drawee,  payee,  acceptor,  and 
indorser.  He  will  draw  drafts,  accept  drafts,  pay  drafts,  indorse  drafts^ 
and  collect  when  due.  He  will  learn  how  to  keep  the  record  of  their  date 
and  maturity  in  the  bill  book,  and  how  to  dispose  of  them  when  paid. 

The  pupil  will  be  the  proprietor  of  the  business,  perform  the  transac- 
tions, and  keep  the  books. 

Business  Papers  Used.  —  Bills  of  parcels,  receipts,  deposit  tickets,  checks,  promissory 
notes,  drafts,  acceptances,  statements,  and  balance  sheets. 

Books  Used. — Journal-daybook,  ledger,  receipt  book,  check  book,  notebook,  draft 
book,  bill  book,  cash  book,  bank  pass  book,  and  trial  balance  book. 

Ledger  Titles  and  Number  of  Lines  Each  will  require.  —  Th.  E.  Student,  9 ;  Adam 
Brown,  7 ;  Byron  Cook,  7 ;  C.  C.  Dunn,  6 ;  Lemuel  Mott,  4 ;  Dennis  Eagan,  7 ;  Paul 
Quinn,  7  ;  Oscar  Sawyer,  9  ;  Premium,  11 ;  Cash,  24 ;  Neill  Odium,  6 ;  Thomas  Utley,  4  ; 
Bills  Receivable,  14 ;  King  &  Co.,  7  ;  Real  Estate,  7 ;  Mark  Nichols,  6 ;  Bills  Payable,  17  ; 
Bovey  &  Co.,  4 ;  Edward  Forster,  7  ;  George  Hunter,  6  ;  Irwin  Janney,  8  ;  Henry  Irving,  9  ; 
Insurance,  9  ;  Bohn  &  Co.,  7  ;  Store  Fixtures,  6  ;  Henry  Stevens,  6  ;  H.  C.  Butler,  7  ;  Burt 
&  Phelps,  5;  Expense,  10;  Mdse.,  29;  Goodwill,  4;  Mdse.  (2d),  20;  L.  C.  Lord,  7; 
W.  F.  Phelps,  6  ;  Cash  (2d),  26  ;  Walker  &  Co.,  6  ;  Home  Manufacturing  Co.,  6  ;  Remit- 
tances, 10;  Loss  &  Gain,  14;   Balance,  14. 


SIXTH  SET 


147 


DIRECTIONS   FOR   WORKING   SIXTH   SET 

1.  Complete  all  the  work  of  each  day  before  commencing  the  work  of  any  succeed- 
ing day,  as  directed  in  the  preceding  set  (p.  138).  Deposit  daily  in  Homeville  Bank  all 
cash  (currency  and  checks)  received. 

2.  Record  in  the  journal-daybook  each  day's  business,  posting  daily  to  the  ledger, 
and  taking  a  trial  balance  in  the  trial  balance  book  weekly  (June  9,  16,  23,  and  30). 

3.  Write  up  the  cash  book  daily,  and  close  the  cash  book  weekly. 

4.  Close  the  ledger,  in  current  form,  on  the  16th  of  June,  and  make  business  and 
financial  statements  and  balance  sheet. 

5.  Close  the  ledger,  in  full  form,  at  the  end  of  the  month,  and  make  business  and 
financial  statements  and  balance  sheet. 


Selling  Price  Lists 

Articles 

List  1 

2 

3 

4 

5 

6 

Chamber  Sets, 

Black  AValnut 

110 

110 

25 

110 

50 

110 

75 

111 

111 

25 

4( 

Oak 

125 

125 

30 

125 

60 

125 

90 

126 

20 

126 

50 

(( 

Rosewood 

175 

175 

55 

176 

10 

176 

65 

177 

20 

177 

75 

Parlor  Sets, 

Black  Walnut 

150 

150 

50 

151 

151 

50 

152 

152 

50 

« 

Rosewood 

225 

225 

70 

226 

40 

227 

10 

227 

80 

228 

50 

«' 

Mahogany 

250 

250 

75 

251 

50 

252 

25 

253 

253 

75 

Roll  Top  Desks, 

Black  Walnut 

75 

75 

15 

75 

30 

75 

45 

75 

60 

75 

75 

(( 

Oak 

90 

90 

25 

90 

50 

90 

75 

91 

91 

25 

Office  Chairs, 

Black  Walnut 

7 

50 

7 

55 

7 

60 

7 

65 

7 

70 

7 

75 

a 

Oak 

8 

8 

05 

8 

10 

8 

15 

8 

20 

8 

25 

Center  Tables, 

Black  Walnut 

35 

35 

15 

35 

30 

35 

45 

35 

60 

35 

75 

« 

Rosewood 

60 

60 

20 

60 

40 

60 

60 

60 

80 

61 

Writing  Desks, 

(( 

45 

45 

25 

45 

50 

45 

75 

46 

46 

25 

« 

Mahogany 

55 

55 

20 

55 

40 

55 

60 

55 

80 

56 

Ex.  Dining  Tables,  Black  Walnut 

35 

35 

15 

35 

30 

35 

45 

35 

60 

35 

75 

« 

Oak 

40 

40 

15 

40 

30 

40 

45 

40 

60 

40 

75 

Dining  Chairs, 

Black  Walnut 

4 

4 

05 

4 

10 

4 

15 

4 

20 

•    4 

25 

(( 

Oak 

5 

5 

05 

5 

10 

5 

15 

5 

20 

5 

25 

Sideboards, 

u 

i^5 

85 

30 

85 

60 

85 

90 

86 

20 

86 

50 

Bookcases, 

Black  Walnut 

95 

95 

25 

96 

50 

95 

75 

96 

96 

25 

MEMORANDA  OF   TRANSACTIONS 

Homeville,  Friday,  June  1,  19 — .  Opened  a  new  set  of  books  with  the  following 
resources  and  liabilities.  Resources :  The  following  persons  owe  me  on  account :  Adam 
Brown,  %  ?  ;  Byron  Cook,  f  ?  ;  C.  C.  Dunn,  ^  ?  ;  Dennis  Eagan,  $  V  ;  Paul  Quinn,  %  ?  ; 
Oscar  Sawyer,  $  ?  ;  Neill  Odium,  $  ?  ;  Lemuel  Mott,  $  ?  ;  Mark  Nichols,  $  ?  ;  Thomas 
Utley,  $  ?  ;  King  &  Co.,  $  ?  ;  cash  in  safe  and  bank,  $  ?  ;  notes  receivable  on  hand,  per 
bill  book,  $  ?  ;  real  estate,  lot  No.  47  Main  St.,  %  ?  ;  total,  $  ?  .  Liabilities  as  follows : 
I  owe  on  account,  Edward  Forster,  $  ?  ;  George  Hunter,  $  ?  ;  Henry  Irving,  ^  ?  ;  Irwin 
Janney,  $  ?  ;  on  outstanding  notes,  per  bill  book,  |  ?  ;  total,  $  ?  . 

June  1.  Bought  of  H.  C.  Butler  store  and  lot,  Nos.  94  and  96  Center  St.,  50  ft. 
frontage  and  120  ft.  deep,  for  f  6000.  Gave  in  jmyment  my  lot.  No.  47  Main  St.,  valued 
at  $3000,  and  my  certified  check  for  the  balance,  $  ?  . 


148  PRACTICE   IN  MODERN  BOOKKEEPING 

June  1.  Bought  of  J.  C.  Hamilton  his  entire  interest  in  the  furniture  business  now 
carried  on  at  91  and  96  Center  St.,  viz. :  Furniture  finished  and  in  process  of  finishing, 
including  lumber,  paints,  oils,  hardware,  and  other  material  as  per  bill  of  sale,  ^5000; 
store  fixtures,  including  counters,  shelving,  desks,  stoves  and  pipe,  tools,  and  safe,  as  per 
bill  of  sale,  §700.  Gave  in  payment  my  three  notes,  all  dated  June  1,  19—,  and  bearing 
interest  at  Q%  on  and  after  July  1,  19 — .  Xote  No.  1  to  run  1  year,  for  ^1000;  Xo.  2 
to  run  2  years,  for  .^1600;  and  No.  3  to  run  3  years,  for  82500. 

June  2.  Insured  in  the  Safety  Insurance  Co.  my  building  and  contents  as  follows : 
$5000  on  Mdse.,  finished  and  unfinished,  and  stock,  at  2%,  f  ?  ;  ,*^3000  on  building,  at  li%, 
$  ?  ;  paid  premium  per  check,  8  ?  ,  favor  Gale  &  Rust. 

June  2.  Sold  Henry  Stevens,  on  account,  1  B.  W.  (black  walnut)  chamber  set,  $  ?  ; 
B.  W.  parlor  set,  f  ?  ;  total,  $  ?  . 

June  2.    Sold  Burt  &  Phelps,  on  credit,  1  B.  W.  roll  top  desk,  $  ?  . 

June  2.  Bought  at  Homeville  Bank,  per  check,  a  draft  on  Chicago  at  \%  premium, 
and  remitted  to  George  Hunter,  Chicago,  for  my  note  of  May  4  f or  $  ?  ;  premium,  $  ?  ; 
check,  I  ?  .     (Remittances  Dr.) 

June  4.   Sold  Paul  Quinn,  on  credit,  1  B.  W.  parlor  set  and  1  B.  W.  center  table,  $  ?  . 

June  4.   Bought  of  Bohn  ^  Co.,  on  credit,  an  invoice  of  lumber,  |175. 

June  4.    Cash  sales  of  ]V|dse.  for  the  day  amount  to  l|  44.35. 

June  5.  Sold  Adam  BroWn,  on  credit,  1  oak  chamber  set,  I  ?  ;  1  oak  extension  dining 
table,  I  ?  ;  total,  f  ?  . 

June  5.   Cash  sales  of  Mdse.  for  the  day  amount  to  $  97.40. 

June  6.    Received  from  George  Hunter,  my  note  of  May  4.     (Remittances  Cr.) 

June  6.  Sold  H.  C.  Butler,  on  credit,  1  rosewood  chamber  set,  I  ?  ;  1  rosewood 
center  table,  |  ?  ;  total,  $  ?  . 

June  6.  Sold  Byron  Cook,  on  credit,  1  oak  sideboard,  $  ?  ;  1  oak  extension  dining 
table,  $  ?  ;  total,  $  ?  . 

June  6.   Cash  sales  of  Mdse.  for  the  day  amount  to  $52.90. 

June  7.  Bought  of  Noyes  Bros,  paints  and  oils,  as  per  invoice,  $117.50;  gave  in 
payment  my  sight  draft,  their  favor,  on  Henry  Stevens,  for  the  amount. 

June  7.  Sold  C.  C.  Dunn,  on  credit,  6  B.  W.  office  chairs,  at  $  ?  ;  IB.  W.  bookcase, 
$  ?  ;  total,  $  ?  . 

June  7.   Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $46.50. 

June  8.  Sold  George  Hunter,  on  credit,  1  mahogany  parlor  set,  $  ?  ;  1  mahogany 
writing  desk,  $  ?  ;  total,  $  ?  . 

June  8.    Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $04.25. 

June  9.    Drew  from  bank,  per  check,  $88.50,  and  paid  workmen. 

June  9.  Paid  W.  H.  Curtiss  salary  for  the  week  as  salesman,  $  18,  per  order  on  Oscar 
Sawyer  for  goods  from  his  store. 

June  9.    Received  from  George  Huhn  his  check  on  State  Bank  for  his  note,  $  ?  . 

June  9.   Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $69.30, 

June  11.   Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $36.20. 

June  11.  Sold  Alden  Brown  1  B.  W.  parlor  set,  $  ?  ;  IB.  W.  extension  dining  table, 
$  ?  ;  6  B.  W.  dining  chairs,  at  $  ?  ;  total,  $  ?  ;  received  in  payment  his  sight  draft  on 
Sanford  Niles  for  the  amount.     (Debit  Cash  ;  and  deposit  the  draft  in  the  bank.) 

June  11.  Accepted  Irwin  Janney's  draft  at  5  days'  sight  in  favor  of  H.  M.  Knox 
for  $250. 

June  12.  Accepted  Edward  Forster's  draft  at  10  days'  sight,  favor  of  H.  M.  Myers, 
for  amount  due  him  on  account,  $  ?  . 

June  12.  Sold  Neill  Odium,  on  credit,  1  R.  W.  (rosewood)  parlor  set,  $  ?  ;  1  R.  W. 
writing  desk,  $  ?  ;  6  oak  dining  chairs,  at  $  ?  ,  $  ?  ;  total,  $  ?  . 


SIXTH  SET  .  149 

June  12.    Received  Dennis  Eagan's  check  on  Park  Bank  in  full  of  account,  $  ?  . 

June  12.   Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $04.50. 

June  l:}.  Drew  at  sight  on  Lemuel  Mott,  for  amount  due  me,  in  favor  of  Ilomeville 
Bank,  and  deposited  the  same  in  bank  to  my  credit,  $  ?  . 

June  \''^.  Sold  Mark  Nichols,  on  credit,  1  B.  W.  chamber  set,  .|  ?  ;  1  B.  W. 
center  table,  I  ?  ;  1  B.  W.  Ex.  dining  table,  $  ?  ;  6  B.  W.  dining  chairs,  at  $  ?  ,  $  ?  ; 
total,  %  ?  . 

June  13.  Drew  on  King  &  Co.,  on  demand,  favor  of  Homeville  Bank,  for  ^300, 
and  deposited  the  draft  in  bank  to  my  credit. 

June  13.   Bought  of  Home  Manfg.  Co.,  on  credit,  unfinished  furniture,  ^  1475. 

June  13.  Settled  my  account  with  Bohn  &  Co.  by  giving  thera  my  draft  at  10  days' 
date,  their  favor,  on  Henry  Stevens,  for  balance  of  his  account,  $  ?  ,  and  check  for  the 
balance  due  Bohn  &  Co.,  $  ?  ;  total,  |  ?  . 

June  13.  Received  from  Aaron  Bull  his  check  on  Homeville  Bank  in  full  payment 
of  his  note.  No.  1,  dated  May  14,  $  ?  . 

June  13.    Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $58.75. 

June  14.  Paid  R.  H.  Leonard,  drayman,  for  services  rendered,  per  order  on  Oscar 
Sawyer,  for  goods  from  his  store,  $  15.75. 

June  14.  Drew  at  sight  on  H.  C.  Butler  for  amount  due  me  on  account,  in  favor  of 
and  to  apply  on  account  of  Irving  Janney,  $  ?  . 

June  14.   Bought  of  Bovey  &  Co.,  on  credit,  invoice  of  lumber,  $72.30. 

June  14.  Drew  at  10  days'  sight  on  Burt  &  Phelps,  my  favor,  for  amount  of  their 
bill  of  June  2,  and  they  return  the  draft  accepted,  $  ?  . 

June  14.   Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $49.30. 

June  14.  Bought,  per  check,  Chicago  exchange  for  $  50,  at  \  %  premium,  and  remit- 
ted to  Henry  Irving  for  my  note  of  May  17;  premium,  ?}^;  check,  $?  . 

June  14.  Purchased,  per  check,  at  \  %  premium,  exchange  on  N.  Y.  for  $  100,  and 
remitted  to  Seth  Tuttle,  N.  Y.,  for  my  note  of  May  17 ;  premium,  ?  ^;  check,  $  ?  . 

June  15.  Received  Mark  Nichols's  sight  draft  on  Henry  Irving,  my  favor,  for  $100, 
and  I  have  received  credit  for  the  same  on  the  books  of  Henry  Irving. 

June  15.  Sold  L.  C.  Lord,  on  credit,  1  oak  chamber  set,  $  ?  ;  1  oak  roll  top  desk, 
$  ?  ;  4  oak  office  chairs,  at  $  ?  ,  $  ?  ;  total,  $  V  . 

June  15.    Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $51.25. 

June  16.  Received  Henry  Jones's  check  on  State  Bank  for  $  ?  ,  in  payment  of  his 
note  of  May  16. 

June  16.   Received  from  Henry  Irving,  Chicago,  my  note  of  May  17,  $  ?  . 

June  16.  Paid  W.  H.  Curtiss  amount  due  him  on  salary  to  date,  as  salesman,  per 
order  on  Oscar  Sawyer  for  goods  from  his  store,  $  24. 

June  16.  Drew  per  check  on  Homeville  Bank,  for  amount  of  workmen's  wages  for 
the  week,  and  paid  them  in  full,  $  88.50. 

June  16.   Paid  H.  M.  Knox,  per  check  for  my  acceptance  of  June  11,  $  ?  . 

June  16.  Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $  73.75. 

June  16.    Received  from  Seth  Tuttle,  N.  Y.,  my  note  of  May  17,  $  ?  . 

Inventory  of  Property  on  Hand,  June  i6,  ig— .    Six  List6 


Store  &  Lot,  94  &  96  Center  St. 

6000 

11^  months'  Insurance 

138 

96 

Store  Fixtures,  at  cost 

700 

Merchandise  (estimated  value) 

4145 

50 

10984 

46 

150  PRACTICE   IN  MODERN  BOOKKEEPING 

Homeville,  Monday,  June  18,  19—.     Sold  Dennis  Eagan,  on  credit,  1  R.  W.  chamber 
set,  $?;  1  R.  W.  parlor  set,  $?;  1  R.  W.  center  table,  |?;  1  R.  W.  writing  desk,  $?. 
June  18.    Bought  of  Bohn  &  Co.,  on  credit,  invoice  of  lumber,  i^SOO. 
June  18.   Bought  of  Home  Manfg.  Co.,  on  credit,  unfinished  furniture,  $1250. 

June  18.  Sold  Edward  Forster,  on  credit,  1  mahogany  parlor  set,  $  ? ;  1  mahogany 
writing  desk,  ^  ? ;  total,  f  ? . 

June  18.  Received  Simon  Jewell's  certified  check  on  Homeville  Bank  for  |?,  in  full 
payment  of  his  note  due  this  day. 

June  18.  Accepted  Irwin  Janney's  draft  at  5  days'  sight  for  amount  due  him,  favor 
of  D.  C.  Bell,  $?. 

June  18.  Received  certified  check  on  Homeville  Bank  from  Thomas  Catlin,  in  full 
of  his  note  of  May  19,  ^  ? . 

June  18.  Bought,  per  check,  at  ^%  premium,  Chicago  exchange  for  ^? ,  and  remitted 
to  Otto  Miller,  Chicago,  for  my  note  of  May  21 ;  premium,  i^?;  check,  |?. 

June  18.   Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $47.80. 

June  19.   Sold  Burt  &  Phelps,  on  credit,  6  oak  office  chairs,  at  $?;  1  bookcase,  $?. 

June  19.  Bought,  per  check,  at  J%  premium,  N.  Y.  exchange  for  $?,  and  remitted 
to  Lord  &  Taylor,  N".  Y.,  for  h^y  note  of  May  21 ;  premium,  $  ?  ;  check,  $  ?  . 

June  19.  Bought,  per  chqck,  at  \  %  premium,  Boston  exchange  f  or  $  ?  ,  and  remitted 
to  Charles  Adams,  Boston,  for  my  note  of  May  22 ;  premium,  $  ?  ;  check,  |  ?  . 

June  19.    Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $  59.60. 

June  20.  Drew  at  sight  on  L.  C.  Lord  for  amount  due  me  on  account,  favor  of 
Bohn  &  Co.,  to  apply  on  their  account,  $  ?  . 

June  20.   Bought  of  Walker  &  Co.,  on  credit,  invoice  of  lumber,  $  245. 

June  20.    Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $  74.20. 

June  21.  Sold  W.  F.  Phelps,  on  credit,  1  mahogany  parlor  set,  $  ?  ;  1  mahogany 
writing  desk,  $  ?  ;  1  oak  sideboard,  $  ?  ;  1  oak  Ex.  dining  table,  $  ?  ;  6  oak  dining  chairs, 
at  $  ?  ,  $  ? ;  total,  $  ?  . 

June  21.    Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $  175.20. 

June  22.    Received  from  Otto  Miller,  Chicago,  my  note  of  May  21,  $  ?  . 

June  22.  Drew  at  sight  on  Edward  Forster,  favor  of  Bovey  &  Co.,  for  amount  due 
them  on  account,  $  ?  . 

June  22.  Paid  H.  M.  Myers,  per  check,  for  my  acceptance,  his  favor,  of  the  12th 
inst.,  $  ?  . 

June  22.  Accepted  Henry  Irving's  draft  on  me,  favor  of  W.  B.  Hixson,  at  3  days' 
sight,  for  $75. 

June  22.   Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $  130. 

June  22.  Sold  L.  C.  Lord  1  B.  W.  chamber  set,  $  ?  ;  1  B.  W.  roll  top  desk,  $?  ; 
6  B.  W.  office  chairs,  at  $  ?  ;  total,  $  ?  ;  received  his  check  on  Homeville  Bank  for  $  125, 
balance  on  credit,  $  ?  . 

June  23.    Received  from  Lord  &  Taylor,  X.  Y.,  my  note  of  May  21,  $  ?  . 

June  23.  Drew  at  sight  on  Mark  Nichols  for  balance  due  me  on  account,  in  favor  of 
Walker  &  Co.,  to  apply  on  their  account,  $  ?  . 

June  23.    Paid  D.  C.  Bell,  per  check,  for  my  acceptance  of  June  18,  $  ?  . 

June  23.  Paid  W.  H.  Curtlss  amount  due  him  as  salesman,  $24,  per  my  sight  draft 
on  Thomas  Utley,  for  amount  due  me  on  account,  $  ?  ,  and  my  check  for  the  balance, 
$  ?  ;  total,  $  24.  "^ 

June  23.  Drew  per  check  from  Homeville  Bank,  $  88.50,  and  paid  workmen  for  wages 
for  the  week,  as  per  pay  roll. 

June  23.   Received  from  Burt  &  Phelps  cash  for  their  acceptance  of  June  14,  $  ?  . 

June  23.   Received  from  Charles  A^ams,  Boston,  my  note  of  May  22,  $  V  . 


SIXTH  SET 


151 


June  23.   Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  ^123.75. 

June  25.  Sold  H.  C.  Butler,  on  credit,  1  bookcase,  |  ?  ;  (j  oak  dining  chairs,  at  $  ?  , 
^  ?  ;  1  oak  sideboard,  I  ?  ;  1  oak  extension  dining  table,  $  ?  ;  total,  ^  ?  . 

June  25.  Drew  on  King  &  Co.,  at  sight,  for  the  balance  due  nie  on  account,  and 
■deposited  the  same  to  my  credit  in  Homeville  Bank,  $  ?  . 

June  25.  Accepted  Henry  Irving's  draft  on  me  at  3  days'  sight,  for  balance  due  him 
on  account,  in  favor  of  William  Walker,  .$  ?  . 

June  25.  Drew  at  sight  on  H.  C.  Butler,  favor  of  Bohn  &  Co.,  for  amount  due  them 
on  account,  $  ?  . 

June  25.  Drew  at  sight  on  W.  F.  Phelps,  favor  of  Walker  &  Co.,  for  amount  due 
them  on  account,  «f  ?  . 

June  25.    Paid  per  check  for  my  acceptance  of  June  22,  favor  of  W.  B.  Hixson,  $  V  . 

June  26.    Received  cash  in  full  of  account  from  Oscar  Sawyer,  $  ?  . 

June  26.  Drew  at  sight  on  L.  C.  Lord,  for  balance  due  me  on  account,  and  deposited 
the  same  to  my  credit  in  Homeville  Bank,  $  ?  .    * 

June  26.    Received  from  Dennis  Eagan  his  check  on  Park  Bank  for  ^205,  on  account. 

June  26.  Drew  at  10  days'  sight  on  W.  F.  Phelps,  my  favor,  for  amount  due  me  on 
account,  and  he  returns  the  draft  accepted,  $  ?  . 

June  26.    Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $170. 

June  27.  Drew  at  10  days'  sight  on  Neill  Odium,  my  favor,  for  amount  due  me  on 
account,  and  he  returns  the  draft  accepted,  $  ?  . 

June  27.  Sold  Edward  Forster  1  B.  AV.  roll  top  desk,  $  ?  ;  received  his  check  on 
Homeville  Bank  covering  balance  of  account  and  this  bill,  $  ?  . 

June  28.  Received  from  Aaron  Bull  exchange  on  Homeville  Bank  for  f  ?  ,  in  full 
payment  of  his  note  Xo.  2  of  May  14,  due  this  day. 

June  28.    Received  C.  C.  Dunn's  certified  check  on  Park  Bank  in  full  of  account,  $  ?  . 

June  28.  I  have  this  day  completed  arrangements  with  Forster  &  Co.  for  the  sale  to 
them  of  my  entire  business,  including  Mdse.,  store  fixtures,  insurance,  good  will,  etc., 
possession  to  be  given  July  2,  19 — .  Received  from  them  their  note  at  6  months,  with 
interest  at  0%,  for  the  following  considerations  and  amounts:  furniture  finished  and  in 
process  of  finishing,  including  lumber,  paints,  oils,  hardware,  and  other  materials  as  per 
inventory,  $  3600  ;  store  fixtures,  including  qounters,  shelving,  desks,  stoves  and  pipe,  tools, 
and  safe,  as  per  inventory,  $650;  good  will  for  5  years,  per  agreement,  $1000;  insurance, 
11  months,  unexpired  policy  of  $5000  on  stock  at  cost,  $132.92;  total  $5382.92. 

June  28.  Leased  to  Forster  &  Co.  my  store,  Nos.  94  and  96  Center  St.,  for  a  term  of 
5  years  from  July  2,  19 — ,  at  an  annual  rental  of  $1000,  payable  quarterly  in  advance; 
received  their  check  on  Homeville  Bank  for  quarter  commencing  July  2,  $  ?  . 

June  29.    Cash  sales  of  Mdse.  for  the  day,  as  per  sales  book,  $183.25. 

June  30.   Paid  W.  H.  Curtiss,  per  check,  amount  due  hira  as  salesman,  $24. 

June  30.  Drew,  per  check,  $88.50,  and  paid  workmen  for  wages  in  full  to  date  as  per 
pay  roll. 

General  Results,  Sixth  Set 

Footing  of  Trial  Balance 

2  3  4  5  6 

$32770.14      $32836.08      $32896.32  $32956.39  $33016.64 

$32466.33      $32528.01       $32589.96  $32651.77  $32713.73 

Th.  E.  Student's  Net  Capital 

2                       3  4                       5                      6 

$10905.10      $10913.44  $10922.04  $10930.49  $10939.10 

$12466.36      $12481.45  $12496.80  $12512.00  $12537.36 


List  1 

June  16  .  . 

.  $32715.87 

"     30  .  . 

.  $32404.35 

List  1 

June  16  »  . 

,  .  $10896.47 

"     30  .  . 

,  .  $12450.98 

152 


PRACTICE   IN  MODERN  BOOKKEEPING 


Journal-Daybook,  Sundry  Entries 


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154  PRACTICE   IN  MODERN  BOOKKEEPING 

Seventh  Set. — Partnership.     Furniture  Manufacturing 

This  set  represents  a  furniture  manufacturing  business  conducted  by  a 
firm  consisting  of  C.  C.  Curtiss  and  Th.  E.  Student.  Th.  E.  Student  is 
to  have  the  general  management  of  the  business  and  to  keep  the  books. 
The  partners  invest  equally  and  share  alike  in  losses  and  gains. 

The  transactions  are  arranged  for  the  purpose  of  reviewing  all  preced- 
ing work,  and  for  additional  practice  in  the  journal-daybook.  The  cash 
journal  will  receive  special  attention.  All  cash  transactions  will  be 
entered  in  the  cash  journal  only,  and  posted  to  the  ledger  from  it.  The 
cash  journal  will  be  balanced  weekly,  as  it  would  be  daily  in  actual 
business.  The  bank  account  will  be  kept  in  the  check  book,  and  the 
funds  in  the  bank  will  be  considered  as  cash  on  hand,  as  in  the  sixth  set. 

Ample  material  will  be  afforded  for  practice  in  recording  transactions 
which  involve  interest  aiid  discount.  Interest  accrued  on  bills  receivable 
and  bills  payable,  and  ajko  discount  on  commercial  paper  not  matured, 
are  taken  into  consideration  in  showing  the  investments  and  also  the  con- 
dition of  the  business. 

Business  Forms  Used.  —  Invoices,  receipts,  deposit  tickets,  checks,  notes,  drafts, 
statements,  and  balance  sheets. 

Books  Used.  —  Journal-daybook,  cash  journal,  ledger,  note  book,  draft  book,  bill 
book,  check  book,  bank  pass  book,  trial  balance  book,  time  book,  and  pay  roll. 

GENERAL   INSTRUCTIONS   FOR   WORKING   SEVENTH   SET 

1.  Write  all  the  commercial  paper  involved  in  the  opening  of  the  books. 

2.  Record  the  opening  entries  in  the  journal -daybook  and  cash  journal. 

3.  Open  the  ledger,  post  and  take  a  trial  balance. 

4.  Make  out  all  the  business  forms,  record  all  transactions  in  the  journal-daybook, 
or  cash  journal  to  July  7,  inclusive,  and  balance  the  cash  journal. 

5.  Post  and  take  a  trial  balance. 

6.  Write  up  the  business  to  July  14,  inclusive,  in  the  same  manner. 

7.  Post  and  take  a  trial  balance. 

8.  Write  up  the  business  to  July  21,  inclusive. 

9.  Post  and  take  a  trial  balance. 

10.  Write  up  the  fourth  week's  business,  and  take  a  trial  balance. 

11.  Write  up  the  business  to  Aug.  1,  and  take  a  trial  balance. 

12.  Close  up  the  books,  make  statements  and  balance  sheet. 

Ledger  Titles  and  Number  of  Lines  each  will  Require.  —  C.  C.  Curtiss,  6;  Th.  E. 
Student,  6;  Cash,  10;  Van  Dusen  &  Co.,  4;  Knute  Larsen,  4;  Michael  Nelson,  4;  Bills 
Receivable,  20;  George  Heath,  7;  Edwin  Fuller,  7;  Interest,  18;  Bills  Payable,  10;  Isaac 
Jacobs,  6;  Materials,  13;  Oscar  Patton,  6;  Quirk  &  Co.,  6;  Expense,  9;  Mdse.,  34;  Tools 
&  Instruments,  6;  Good  Will,  6  ;  Van  Wyck  &  Co.,  7 ;  Gideon  Hooker,  7 ;  Arthur  Bond,  8; 
Mortgage  Payable,  6;  Charles  Dean,  6;  C.  M.  Loring,  6;  Young  &  Zier,  6;  Koon  &  King, 
6;  Newton  Ogden,  4;  Home  Manufacturing  Co.,  7;  Paul  Redmond,  6;  Rufus  Sterling& 
€o.,  4 ;  Theodore  Upham,  4 ;  Hiram  Kellogg,  4  ;  Adam  Davids,  4 ;  S.  A.  Reed,  4  ;  Mdse.,  30 
{2d) ;  James  Burchard,  4;  James  Gray,  4 ;  Kinsley  &  Co.,  4 ;  Loss  &  Gain,  9 ;  Balance,  24. 


SEVENTH  SET 


15.' 


Selling  Price 

Lists 

Articles  Sold 

List  1 

2 

3 

4 

5 

6 

Chamber  Sets, 

Ash 

45 

45 

50 

46 

46 

50 

47 

47 

50 

u 

Black  Walnut 

60 

60 

50 

61 

61 

50 

62 

62 

50 

(( 

Oak 

75 

75 

75 

76 

50 

77 

25 

78 

78 

75 

(( 

Rosewood 

100 

101 

102 

103 

104 

105 

Parlor  Sets, 

Black  Walnut 

60 

60 

50 

61 

61 

50 

62 

62 

50 

a 

Rosewood 

100 

101 

102 

103 

104 

105 

u 

Mahogany 

125 

126 

25 

127 

50 

128 

75 

130 

131 

25 

Roll  Top  Desks, 

Ash 

50 

50 

50 

51 

51 

50 

52 

52 

50 

a 

Black  Walnut 

75 

75 

75 

76 

50 

77 

25 

78 

78 

75 

^i 

Oak 

80 

.  80 

80 

81 

60 

82 

40 

83 

20 

84 

Office  Chairs, 

Ash 

2 

50 

2 

55 

2 

60 

2 

65 

2 

70 

2 

75 

a 

Black  Walnut 

4 

50 

4 

55 

4 

60 

4 

65 

4 

70 

4 

75 

n 

Oak 

5 

5 

10 

5 

20 

5 

30 

5 

40 

5 

50 

Center  Tables, 

Black  Walnut 

50 

50 

50 

51 

51 

50 

52 

52 

50 

(( 

Rosewood 

50 

50 

50 

51 

51 

50 

52 

52 

50 

(( 

Mahogany 

65 

65 

50 

66 

66 

50 

67 

67 

50 

Writing  Desks, 

Black  Walnut 

25 

25 

25 

25 

50 

25 

75 

26 

26 

25 

a 

Rosewood 

65 

65 

50 

66 

66 

50 

67 

67 

50 

a 

Mahogany 

■   75 

75 

75 

76 

50 

77 

25 

78 

78 

75 

Dining  Tables, 

Ash 

25 

25 

25 

25 

50 

25 

75 

26 

26 

25 

(( 

Black  Walnut 

35 

35 

35 

35 

70 

36 

05 

36 

40 

36 

75 

(( 

Oak 

40 

40 

40 

40 

80 

41 

20 

41 

60 

42 

Dining  Chairs, 

Ash 

2 

2 

05 

2 

10 

2 

15 

2 

20 

2 

25 

<( 

Black  Walnut 

3 

3 

05 

3 

10 

3 

15 

3 

20 

3 

25 

(( 

Oak 

4 

4 

05 

4 

10 

4 

15 

4 

20 

4 

25 

Sideboards, 

Black  Walnut 

75 

75 

75 

76 

50 

77 

25 

78 

78 

75 

(( 

Oak 

85 

85 

80 

86 

60 

87 

40 

88 

20 

89 

Bookcases, 

Black  Walnut 

55 

55 

50 

56 

56 

50 

57 

57 

50 

(( 

Oak 

70 

70 

75 

71 

50 

72 

25 

73 

73 

75 

Upholstered  Easy 

Chairs 

25 

25 

25 

25 

50 

25 

75 

26 

26 

25 

MEMORANDA  OF  TRANSACTIONS 

Home  City,  Monday,  July  2,  19 — .  C.  C.  Curtiss  and  Th.  E.  Student  have  this  day 
formed  a  partnership,  under  the  firm  name  of  Curtiss  &  Co.,  for  the  purpose  of  con- 
ducting a  furniture  manufacturing  business.  The  partners  are  to  invest  in  equal  amounts, 
and  are  to  share  equally  in  gains  and  losses.  Th.  E.  Student  is  to  have  the  general 
management  of  the  business,  as  per  articles  of  agreement,  and  to  keep  the  books  of  the 
firm,  and  in  consideration  of  such  special  service  is  to  be  paid  by  the  firm  a  salary  of 
•$125  per  month. 

July  2.  C.  C.  Curtiss  invests  as  his  share  of  the  capital  the  following  resources; 
cash,  on  deposit  in  Home  City  Bank,  S  7758.45;  Arthur  Bond's  note  for  $1500,  favor  of 
C.  C.  Curtiss,  dated  May  4,  19 — ,  at  60  days,  with  interest;  Charles  Dean's  note,  favor  of 
C.  C.  Curtiss,  dated  June  5,  19 — ,  at  90  days,  $  450.  The  firm  assumes  for  him  the 
following  liabilities:  His  note,  favor  of  Edwin  Fuller,  dated  May  10,  19 — ,  at  3  months, 
$250;  amount  due  George  Heath,  on  account,  $325;  amount  due  Isaac  Jacobs,  on 
account,  $  145.     Total  resources,  $  ?  ;  total  liabilities,  $  ?  ;  net,  $  V  . 


156 


PRACTICE   IN  MODERN  BOOKKEEPING 


Time 


Week  Ending  July  7,  19— 

Rate 

Names  of  Employees 

Hours 

1     per 

Amt. 

1 

M. 

T. 

w. 

Th. 

F. 

S. 

Hour 

1 

Atkins,  James 

10 

10 

10 

10 

8 

48 

50 

24 

2 

Boutelle,  C.  M. 

10 

10 

10 

7 

2 

39 

40 

15 

60 

3 

Chapman,  C.  H. 

10 

10 

>-J 

7 

10 

10 

47 

36 

16 

92 

4 

Daniels,  Horace 

10 

10 

10 

10 

7 

47 

36 

16 

92 

5 

Everhard,  John 

10 

10 

o 

7 

10 

10 

47 

30 

14 

10 

6 

Frink,  Lucius 

10 

10 

w 

10 

10 

8 

48 

28 

13 

44 

7 

Gordon,  J.  L. 

7 

10 

10 

10 

10 

47 

28 

13 

16 

8 

Husted,  James  B. 

10 

10 

10 

10 

8 

48 

25 

12 

126 

11 

1 

Atkins,  James             \ 

Week  Ending  July  U,  1 

,_ 

52 

60 

31 

20 

10 

10 

10 

8 

7 

^ 
i 

2 

Boutelle,  CM.           j^ 
Chapman,  C.  H.        ^ 

10 

10 

X 

10 

10 

7 

47 

40 

18 

80 

3 

X 

10 

10 

10 

10 

8 

48 

40 

19 

20 

4 

Daniels,  Horace 

10 

10 

10 

X 

8 

t 

45 

40 

18 

5 

Jiverhard,  John 

10 

10 

10 

10 

X 

7 

47 

38 

17 

86 

6 

Frink,  Lucius 

10 

X 

10 

10 

10 

n 

47i 

48 

22 

80 

7 

Gordon,  J.  L. 

10 

10 

10 

10 

X 

7 

47 

38 

17 

86 

8 

Husted,  James  B. 

10 

10 

X 

10 

8 

i 

45 

28 

12 

60 

158 

32 

July  2.  Th.  E.  Student  invests  as  his  share  of  the  capital  the  following  resources : 
cash,  on  deposit  in  Home  City  Bank,  ^  6805.08 ;  Knute  Larson's  note,  favor  of  Th.  E. 
Student,  dated  May  14,  19 — ,  at  60  days,  $  1200,  with  interest ;  Michael  Nelson's  note, 
favor  of  Th.  E.  Student,  dated  June  3, 19 — ,  at  3  months,  $  600  ;  an  account  against  Oscar 
Patton  for  $  1500;  an  account  against  Quirk  &  Co.,  for  ^450.  The  firm  assumes  for  him 
the  following  liabilities :  his  note,  favor  of  Richard  Steele,  dated  Apr.  30,  19 — ,  at  90 
days,  ^T50,  with  interest;  his  acceptance  at  90  days,  favor  of  Taylor  &  Co.,  dated 
June  10, 19 — ,  ^300;  his  note,  favor  of  Underwood  &  Co.,  dated  May  12,  19 — ,  at  60  days, 
$  500,  with  interest.     Total  resources,  .$  ?  ;  liabilities,  f  ?  . 


Note.  —  Interest  in  this  set  is  computed  at  6%,  and  days  of  grace  are  allowed  unless  otherwise 
specified.  All  interest  computations  in  this  set  are  made  on  the  basis  of  3(i0  days  to  the  year,  and 
the  6%  method  is  used.     Bank  discount  is  understood  where  discount  is  mentioned. 

Instruction.  —  Bills  Receivable  account  is  Dr.  for  the  face  of  Arthur  Bond's  note,  and  Interest 
account  is  Dr.  for  the  interest  accrued  to  July  2,  it  being  an  interest-bearing  note. Bills  Receiv- 
able account  is  Dr.  for  the /ace  of  Charles  Dean's  note,  and  Interest  account  is  Cr.  for  the  discount 

from  July  2  to  its  maturity,  because  the  note  will  not  be  worth  its  face  value  till  it  becomes  due. 

Bills  Payable  account  is  Cr.  for  tlie/«ce  of  C.  C.  Curtiss's  note,  favor  of  Edwin  Fuller,  and  Interest 

account  is  Dr.  for  the  discount  from  July  2  to  its  maturity. Bills  Receivable  account  is  Dr. 

for  the /ace  value  of  Knute  Larson's  note,  and  Interest  account  is  Dr.  for  the  interest  accrued  to 
July  2. Bills  Receivable  account  is  Dr.  for  the/«ce  of  Michael  Nelson's  note,  and  Interest  ac- 
count is  Cr.  for  the  discount  from  July  2  to  its  maturity. Bills  Payable  account  is  Cr.  for 

the  face  of  Th.  E.  Student's  note,  favor  of  Richard  Steele,  and  Interest  account  is  Cr.  for  the 

interest  accrued  from  its  date  to  July  2. Bills  Payable  account  is  Cr.  for  the /ace  of  Th.  E. 

Student's  acceptance,  favor  of  Taylor  &  Co.,  and  Interest  account  is  Dr.  for  the  discount  from  July  '_' 


SEVENTH  SET 


Book 


157 
Currency  Wanted 


Denoni 

nations  Wanted 

No. 

Kind 

Aujt. 

$10 

$5 

$2 

'fl 

50^ 

25^ 

10^ 

7)0 

If 

9 
3 

10 
5 

90 
15 

20 

4 

10 

5 

50 

10 

7 

2 

14 

10 

5 

1 

50 

25 

10 

05 

02 

4 

1 

4 

10 

5 

1 

50 

25 

10 

05 

02 

3 

50 

1 

50 

10 

4 

10 

3 

25 

75 

10 

2 

1 

25 

10 

05 

04 

6 

10 

60 

10 

2 

1 

10 

05 

01 

4 

05 

20 

10 

2 

9 

01 

09 

90 

15 

00 

14 

00 

4 

00 

1 

50 



75 

— 

Of) 

20 

09 

12(3 

14 

No. 

Kind 

Arat. 

11 

10 

110 

30 

1 

20 

5 

5 

25 

10 

5 

2 

1 

50 

25 

05 

8 

2 

16 

10 

5 

4 

20 

3 

1 

3 

10 

5 

2 

1 

5 

50 

0 

50 

10 

5 

2 

50 

25 

10 

01 

4 

25 

1 

20 

2 

50 

25 

05 

7 

10 

70 

10 

5 

2 

" 

50 

25 

10 

01 

2 

05 

10 

10 

2 

50 

10 

2 

01 

02 

110 

= 

25 

00 

16 

00 

3 

00 

2 

50 

1 

00 

= 

70 

= 

10 



0^ 

I] 

= 

158 

32 

to  its  maturity. Bills  Payable  account  is  Cr.  for  the /ace  of  Th.  E.  Student's  note,  favor  of 

Underwood  &  Co.,  and  Interest  account  is  Cr.  for  the  interest  accrued  from  its  date  to  July  2. 

July  2.  Opened  an  account  with  Home  City  'Bank  and  deposited  our  individual 
checks  received  as  cash  investments,  to  the  credit  of  Curtiss  &  Co.,  $  14,563.53. 

July  2.  Bought  of  Van  Dusen  &  Co.  their  entire  interest  in  the  furniture  business 
now  carried  on  at  Home  City,  including  the  following  items,  as  per  bill  of  sale  :  JNIdse., 
finished  work,  per  invoice,  $  10,000 ;  materials  and  unfinished  work,  per  invoice,  $  5000 ; 
tools,  implements,  and  machinery,  per  invoice,  $  2500 ;  good  will  valued  at  $  2000 ;  one 
month's  rent  of  store  and  factory,  prepaid,  $150;  total,  $19,650;  gave  in  payment  our 
4  notes  with  interest  at  6  %,  secured  by  mortgage  on  the  property,  as  follows :  note  No.  1, 
at  15  days,  $650;  note  Xo.  2,  at  30  days,  $1000;  note  Xo.  3,  at  3  months,  $2000;  note 
No.  4,  at  2  years,  $  10,000 ;  our  certified  check  on  Home  City  Bank  for  the  balance,  $  6000. 

Instruction.  —  A  mortgage  is  a  conveyance  of  property,  upon  condition,  as  security  for  the  pay- 
ment of  a  debt  or  the  performance  of  a  duty,  and  to  become  void  upon  payment  or  performance. 

Good  will  is  the  custom  of  any  trade  or  business;  the  tendency  or  inclinations  of  persons,  old 
customers  and  others,  to  resort  to  an  established  place  of  business;  the  advantages  accruing  from 
such  tendency  or  inclination.  It  consists  "  in  the  probability  that  the  old  customers  will  resort  to 
the  old  place."    It  is  considered  as  a  kind  of  personal  property  which  may  be  bought  or  sold. 

July  2.  Insured  our  property  in  the  Home  Insurance  Co.,  Kinsley  &  Co.  agents,  as 
follows:  $9000  on  Mdse.  finished  and  unfinished;  $1000  on  tools,  implements,  and 
machinery;  total,  $10,000,  at  2|%  premium,  $?;  paid  them,  per  check,  for  one  half 
of  premium,  $  ?  ;  balance,  our  note  at  10  days,  with  interest,  $  ?  . 


158 


PRACTICE  IN  MODERN  BOOKKEEPING 


W-&&^  (otidCnc^  j^ut-Y  7 ,  /^ 


Weekly 


Names 

Employment 

Time 

/ 

(XtAvyiQy,  ^a-'yyv&a^ 

CLoyiiAZant  S'ave/Yybo/yv 

¥8  kauvQ. 

2 

BautM&,  ^.  m. 

€cL6-ln^&t  TnakeA. 

3^/       /' 

S 

^ka/^'nvayyi,  €.   /if. 

(^\.v-e.v 

ifY      „ 

¥ 

^a^nie'Uy,  /'fa\xi(t& 

i^iviel  TVlakeA. 

¥■7      '' 

6 

€v-&vkaA,cL,  ^akn 

//              // 

¥-7      " 

6 

S^vlmJo,  LiAA^iii^ 

€7iaiAV&&\, 

¥8      // 

7 

'^avcLan^,  f.  L. 

^a6^ln.&t  Tyiak&v 

¥■7     - 

8 

/ifuoZed,    fdTTL&Q.  IS. 

<%v&yKci'yi 

¥8      ./ 

liy&&^€nc{A/yi(f 

f'U.tlf  /¥- 

/ 

CUJcinQy,  ^a/yyu&O' 

(Zo^ioZa/ytt  S^cyieAyvcLn 

^2  /uyKAyQ^ 

2 

Bcmtdu,  ^,  m. 

(^u^^-V'yiet  Tfla/c&h 

if7     ., 

3 

^ka/^ynxxm.,  ^.  /if. 

(^avv-&v 

¥8      // 

^ 

^a^i&toy,  /lfauis^& 

^{f'V'yiet  Tfla/oev 

¥6      // 

6 

€v-eA^kaAucL,  ^okru 

//             // 

if7      n 

6 

S^vim/o,  £a4^\yw^ 

Snc^vn&eAy 

¥7'l,  - 

7 

^cyidxyyu,  f.  L. 

(^a6X/n&t  ??Icl/c£A. 

¥-7     - 

8 

/fu^oZe^cL,    ^OATV&O'   B. 

of'iAy£/yK-am' 

^6'   ./ 

July  2.   Cash  sales  of  Mdse.  for  the  day,  per  tickets,  $36.20. 

Instruction,  —  If  no  sales  book  is  kept,  the  cash  sales  are  entered  on  sales  tickets  by  the  sales- 
men. These  sales  tickets  are  then  put  on  spindles  and  kept  until  the  close  of  business  each  day, 
when  they  are  added,  and  the  gross  amount  entered  in  the  journal  or  the  cash  book. 

A  cash  register  is  now  quite  extensively  used  in  the  place  of  tickets. 

July  3.  Sold  Arthur  Bond,  on  credit,  1  B.  W.  bookcase,  $  ?  ;  1  B.  W.  center  table, 
$  ?  ;  4  B.  W.  office  chairs,  at  $  ?  ;  1  upholstered  easy  chair,  %  ?  ;  total,  $  ?  . 

July  3.  Sold  Charles  Dean,  on  credit,  1  B.  W.  chamber  set,  $  ?  ;  1  B.  W.  dining 
table,  $  ?  ;  6  B.  W.  dining  chairs,  at  $  ?  ;  IB.  AV.  sideboard,  %  ?  ;  total,  %  ?  . 

July  3.  Sold  Edwin  Fuller,  on  credit,  1  R.  W.  parlor  set,  $  ?  ;  1  R.  W.  writing  desk, 
$  ?  ;  1  oak  bookcase,  8  ?  ;  2  upholstered  easy  chairs,  at  8  ?  ;  total,  %  ?  . 

July  3.    Cash  sales  of  Mdse.  for  the  day,  per  tickets,  %  42.60. 

July  5.  Sold  George  Heath,  on  his  note  at  10  days,  with  interest  at  6  %,  1  oak  cham- 
ber set,  ^  ?  ;  1  oak  dining  table,  $  ?  ;  8  oak  dining  chairs,  at  $  ?  ;  1  oak  sideboard,  %  ?  ; 
total,  %  ?  . 

July  5.    Bought  of  Isaac  Jacobs,  on  credit,  2^  tons  coal,  at  %  6.50,  for  factory  use. 

July  5.   Sold  Knute  Larson,  on  note  at  30  days,  1  ash  chamber  set,  %  ?  . 


SEVENTH  SET 


159 


Pay  Roll 


1i}^&&h  ^ytcllyi^  jluty-  /,  /^- 


Rate 

Amount 

Signatures 

Remarks 

■50 

2^ 

jIamv&Qy  dXAino^ 

^0 

/6 

60 

€.  in.  JS<yictdU 

36 

/6 

^2 

(P..  //.  €kwpy>vwyv 

36 

/6 

^2 

/ifava^^  ^a-ni&U' 

30 

/¥■ 

JO 

folvyi  (oi^&vkau:l 

28 

/3 

If//. 

JLw&iyuv  S^vVYiJo 

28 

/3 

f6 

f.  jC.  ^(yvcLavb 

26 

/2 

^OAyvtQy  B.   /ifiioZ&cC 

/26 

f^ 

60 

3/ 

20 

fa.^^&a^  CCUovyiQ, 

^0 

/8 

80 

e.  791  BcyiilMe. 

^0 

/9 

20 

(P.   ff.   (Pkajcynxiyyv 

^0 

/8 

fi'(yiAX^&  ha.ni&U/ 

38 

// 

86 

^akn  Sv'&vka'ui 

^8 

22 

80 

JLu^AAi^  <3^vtm,k/ 

38 

// 

86 

f.  £.  ^a'CtUru 

28 

/2 

60 

fa.nv&Q.  £.  /'ftvote^d 

/68 

32 

July  5.   Cash  sales  of  Mdse.  for  the  day,  per  tickets,  $27.90. 

July  6.  Sold  Michael  Nelson  1  ash  chamber  set,  $  ?  ;  1  ash  dining  table,  $  ?  ;  6  ash 
dining  chairs,  at  $  ?  ;  1  oak  sideboard,  %  ?  ;  total,  %  ?  ;  received  in  payment  Oscar  Patton's 
acceptance,  favor  of  Michael  Nelson,  dated  July  6,  19 — ,  at  11  days. 

July  6.  Received  Arthur  Bond's  check,  in  full  of  his  note,  favor  of  C.  C.  Curtiss, 
due  this  date ;  face  of  note,  %  ?  ;  interest,  63  days  at  6  %,  %  ?  ;  total,  $  ?  . 

July  6.  Received  Michael  Nelson's  check  for  %  593.80  in  payment  of  his  note,  favor 
Th.  E.  Student,  less  discount  to  maturity ;  face  of  note,  $  ?  ;  discount,  62  days,  $  ?  . 

July  6.   Cash  sales  of  Mdse.  for  the  day,  per  tickets,  %  54.25. 

July  7.  Bought  of  Rufus  Sterling  &  Co.,  on  our  note  at  60  days,  payable  at  our  office, 
lumber,  per  invoice,  $1250.     (Charge  to  Materials  account.) 

July  7.  Received  finished  work  from  the  factory,  per  foreman's  statement,  and 
charged  the  same  to  Mdse.  account,  %  750. 


Instruction.  —  Goods  in  the  factory  or  shop  which  are  not  in  a  finished  condition  are  here  con- 
sidered as  materials,  and  when  finished  are  transferred  to  the  store  or  salesroom,  are  charged  to 
Mdse.  account  and  credited  to  Materials  account.  The  amount  given  represents  the  factory  price  or 
cost  of  manufacturing  the  goods  transferred. 


160  PRACTICE   IN  MODERN  BOOKKEEPING 

July  7.  Deposited  in  Home  City  Bank  Arthur  Bond's  check,  |  ?  ;  Michael  Nelson's 
check,  %  ?  ;  currency,  ^  ?  ;  total,  %  2200. 

July  7.  Drew  ^  12().14  from  Home  City  Bank,  per  check,  and  paid  workmen's  wages 
for  the  week,  as  per  time  book  and  pay  roll.     See  pages  150-1.59.     (Materials,  Dr.) 

Instruction.  —  Workmen  in  factories  usually  receive  their  wages  weekly.  The  foreman  of 
the  factory  makes  out  the  pay  roll  of  the  workmen  for  the  week  and  sends  it  to  the  office.  The 
manager  draws  a  cheek  for  the  entire  amount  of  the  pay  roll,  and  ohtahis  from  the  bank  currency 
in  denominations  convenient  for  paying  the  woj'kmen  individually.  He  then  places  each  work- 
man's wages  in  a  separate  envelope  and  delivers  it  to  the  workman,  receiving  in  return  his  receipt, 
which  is  usually  his  signature  on  the  pay  roll  opposite  his  name  and  amount.  Some  managers  draw 
a  check  for  each  individual  workman,  and  thereby  obtain  each  workman's  signature  indorsed  on 
the  check,  which  serves  as  a  receipt  for  his  wages.  * 

July  9.  Sold  Van  Wyck  &  Co.  4  B.  W.  chamber  sets,  at  .*$  ?  ;  6  oak  chamber  sets,  at 
$  ?  ;  6  oak  dining  tables,  at  $  ?  ;  48  oak  dining-  chairs,  at  ^  ?  ;  total,  ^  ?  ;  received  their 
check,  dated  July  11,  for  $750;  balance  on  account,  %  ?  . 

July  9.   Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  .$42.75. 

July  9.  Sold  Theodore  Upiiam  10  ash  chamber  sets,  at  f  ?  ;  6  ash  dining  tables,  at 
$  ?  ;  48  ash  dining  chairs,  at  ^f^? ;  2  oak  sideboards,  at  $  ?  ;  total,  ^  ?  ;  received  in  pay- 
ment, his  note  at  15  days  wiih  interest,  $600;  his  sight  draft  on  Frederick  Curtiss  for 
the  balance,  $  ?  . 

July  9.    Deposited  in  Home  City  Bank,  $  350. 

July  10.  Accepted  George  Heath's  draft,  at  60  days'  sight,  favor  of  William 
H.  Walker,  for  $  125,  payable  at  our  office. 

July  10.  Drew,  at  10  days'  sight,  our  favor,  on  Arthur  Bond  for  $  100;  draft  returned 
duly  accepted. 

July  10.  Bought  of  Home  Manufacturing  Co.  unfinished  furniture,  per  invoice,  $  1500; 
gave  them  in  payment  our  certified  check  for  one  half  of  the  bill,  $  ?  ;  balance  on 
account,  $  ?  . 

July  10.  Sold  Young  and  Zier  1  oak  roll  top  desk,  $  ?  ;  4  oak  office  chairs,  at  $  ?  ; 
2  up.  easy  chairs,  at  $  ?  ;  1  oak  bookcase,  $  ?  ;  total,  $  ?  ;  received  their  note,  at  10  days 
with  interest,  for  $150  ;  balance  on  account,  $?  . 

July  10.   Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $  54.50. 

July  11.  Sold  Charles  Dean  1  R.  W.  chamber  set,  $  ?  ;  1  R.  W.  parlor  set,  $  ?  ;  total, 
$  ?  ;  received  his  note  at  60  days,  $  100 ;  balance  on  account,  $  ?  . 

July  11.    Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $39.25. 

July  11.   Deposited  $  8.50  in  Home  City  Bank. 

July  12.  Sold  Edwin  Fuller  1  mahogany  parlor  set,  $  ?  ;  received  his  note  at  10  days, 
with  interest,  for  $  75,  to  apply  on  bill ;  balance  on  account,  $  V  . 

July  12.   Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $  37.45. 
^      July  13.   Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $  53.75. 

July  14.  Redeemed,  per  check,  Th.  E.  Student's  note  of  May  12,  favor  of  Under- 
wood &  Co. ;  face  of  note,  $  ?  ;  interest  ?  days,  at  6  %„  $  ?  ;  total,  $  ?  . 

July  14.  Prepaid,  per  check,  C.  C.  Curtiss's  note  of  May  10,  favor  of  Edwin  Fuller; 
face  of  note,  $  ?  ;  discount  off,  ?  days  at  6  %,  $  ?  ;  amount  paid,  $  ?  . 

July  14.  Received  finished  work  from  the  factory  during  the  week,  per  statement  of 
the  foreman,  $  1025. 

July  14.    Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $45.30. 

July  14.    Deposited  cash  in  Home  City  Bank,  $  100. 

July  14.  Drew  $158.32  from  Home  City  Bank,  per  check,  and  paid  the  workmen 
their  wages  for  the  week,  as  per  time  book  and  pay  roll. 


SEVENTH  SET         .  161 

July  16.  Received  Knute  Larson's  check,  in  full  of  his  note  of  May  14,  19 — ;  face  of 
note,  $  ?  ;  interest,  ?  days  to  date  at  6  %,  %  ?  ;  total,  $  ?  . 

July  16.  Received  Knute  Larson's  check,  in  full  of  his  note  of  July  5, 19 — ;  face  of 
note,  ^  ?  ;  discount  off,  ?  days  at  6  %,  ?  f ;  face  of  check,  $  ?  . 

July  16.  Sold  Gideon  Hooker,  on  credit,  1  R.  W.  chamber  set,  $  ?  ;  1  R.  W.  center 
table,  $  ?  ;  1  oak  bookcase,  $  ?  ;  total,  %  ?  . 

July  16.    Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  %  27.75. 

July  16.   Deposited  in  Home  City  Bank,  ^  1275. 

July  17.  Sold  Arthur  Bond,  on  credit,  1  oak  roll  top  desk,  ^  ?  ;  6  oak  office  chairs,  at 
$  ?  ;  1  upholstered  easy  chair,  Z  ?  ;  total,  $  ?  . 

July  17.  Sold  Gideon  Hooker,  on  credit,  1  B.  W.  roll  top  desk,  $  ?  ;  6  B.  W.  office 
chairs,  at  $  ?  ;  IB.  W.  bookcase,  $  ?  ;  total,  %  ?  . 

July  17.   Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $65.50. 

July  17.   Deposited  cash  in  Home  City  Bank,  %  75. 

July  18.  Received  George  Heath's  check,  in  ^uU  of  his  note,  dated  July  5,  19 — ;  face 
of  note,  $  ?  ;  interest  accrued,  ?  days,  ?  f  ;  total,  %  ?  . 

July  18.  Prepaid,  per  check,  our  acceptance,  favor  of  William  H.  Walker,  of  July  10, 
19 — ;  face  of  acceptance,  $  ?  ;  discount,  V  days,  ^  ?  ;  face  of  check,  %  ?  . 

July  18.  Sold  Koon  &  King,  on  credit,  1  oak  roll  top  desk,  $  ?  ;  1  oak  bookcase,  $  ?  ; 
4  oak  office  chairs,  at  $  ?  ;  total,  $  ?  . 

July  18.    Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $  107.50. 

July  18.   Deposited  in  Home  City  Bank,  %  325. 

July  19.  Bought  of  Home  Manufacturing  Co.  unfinished  furniture,  %  750 ;  gave  in 
payment  our  sight  draft  on  Van  Wyck  &  Co.  for  $  350 ;  our  check  for  the  balance,  %  ?  . 

July  19.  Sold  George  Heath,  on  credit,  1  R.  W.  chamber  set,  $  ?  ;  1  R.  W.  writing 
desk,  $  ?  ;  total,  $  ?  . 

July  19.  Sold  C.  M.  Loring,  on  credit,  1  mahogany  parlor  set,  $?;  1  mahogany 
writing  desk,  $  ?  ;  1  upholstered  easy  chair,  |  ?  ;  total,  $  ?  . 

July  19.  Sold  Van  Wyck  &  Co.  on  credit  1  oak  chamber  set,  $  ?  ;  1  oak  dining 
table,  $  ?  ;  8  oak  dining  chairs,  at  |  ?  ;  4  oak  sideboard,  $  ?  ;  total,  $  ?  . 

July  19.   Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  %  79.60. 

July  19.  Received  Theodore  Upham's  check  for  $250,  to  apply  on  his  note  of 
July  9,  19 — ;  face  of  note,  $  ?  ;  interest  on  principal,  ?  days  to  date,  %  ?  ;  ajjplied  on 
principal,  $  ?  . 

July  19.   Deposited  $  300  in  Home  City  Bank. 

July  19.  Paid  our  note  No.  1,  favor  of  Van  Dusen  &  Co.,  of  July  2,  19 — ;  face  of 
note,  $  ?  ;  interest  accrued  to  date,  ?  days  at  6  %,  $  ?  ;  total,  %  ?  ;  gave  in  payment  our 
draft  on  Edwin  Fuller,  payable  on  demand,  $  200 ;  our  check  for  the  balance,  $  ?  . 

July  20.   Received  Arthur  Bond's  check  for  %  40,  to  apply  on  account. 

July  20.  Received  Oscar  Patton's  check  f or  $  ?  ,  in  full  payment  of  his  acceptance, 
favor  of  Michael  Nelson,  dated  July  6,  19 — . 

July  20.    Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $  62.40. 

July  21.  Sold  Paul  Redmond,  on  credit,  1  B.  W.  dining  table,  $  ?  ;  8  B.  W.  dining 
chairs,  at  .|  ?  ;  IB.  W.  sideboard,  $  ?  ;  total,  $  ?  . 

July  21.    Received  finished  furniture  from  factory,  per  statement,  $  950. 

July  21.    Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $  84.75. 

July  21.  Drew  from  Home  City  Bank,  per  check,  $146.75,  and  paid  the  workmen's 
wages  for  the  week,  as  per  time  book  and  pay  roll. 

July  21.   Deposited  1 325  in  Home  City  Bank. 

July  21.  Sold  C.  M.  Loring,  on  credit,  1  ash  chamber  set,  $  ?  ;  1  ash  dining  table, 
$  ?  ;  6  ash  dining  chairs,  at  $  ?  ;  total,  $  ?  . 


162  PRACTICE   IN  MODERN  BOOKKEEPING 

July  23.  Received  Arthur  Bond's  check  for  i|  ?  ,  in  full  payment  of  his  acceptance 
dated  July  10,  19—. 

July  23.  Received  Young  &  Zier's  check  for  $  ?  ,  in  full  payment  of  their  note  of 
July  10,  19— ;  face  of  note,  %  ?  ;  interest,  ?  days  at  6  %,  ?  f  . 

July  23.  Received  Charles  Dean's  check  for  .f  ?  ,  in  full  payment  of  his  note  of  July 
11,  19 — ;  face  of  note,  |  ?  ;  discount,  ?  days  at  6  %,  ?  f>  . 

July  23.    Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  ^  94.30. 

July  23.    Deposited  -$  450  in  Home  City  Bank. 

July  23.  Sold  Koon  &  King  1  ash  roll  top  desk,  $  ?  ;  4  ash  office  chairs,  at  $  ?  ;  totals 
$  ?  ;  received  their  check,  %  40,  to  apply  on  bill. 

July  24.  Sold  Paul  Redmond,  on  credit,  1  B.  W.  parlor  set,  ^  V  ;  1  ash  dining  table^ 
.f  ?  ;  IB.  W.  bookcase,  $  ?  ;  1  B.  W.  writing  desk,  ^  ?  ;  total,  $  ?  . 

July  24.  Sold  Hiram  Kellogg  1  B.  W.  parlor  set,  %  ?  ;  1  B.  W.  dining  table,  $  ?  ; 
6  B.  W.  dining  chairs,  at  $  ?  ;  1  B.  W.  sideboard,  f  ?  ;  total,  ^  ?  ;  received  his  note  at 
2  months  for  the  amount. 

July  24.  Sold  Gideon  Hooker,  on  credit,  1  mahogany  parlor  set,  $  ?  ;  1  mahogany 
writing  desk,  %  ?  ;  total,  ^  ?  . 

July  24.  Sold  Xewton  O^en,  on  credit,  1  ash  roll  top  desk,  ^  ?  ;  4  ash  office  chairs, 
at  I  ?  ;  total,  $  ?  .  ^ 

July  24.   Cash  sales  of  M<Jse.  for  the  day,  as  per  tickets,  $74.25. 

July  24.   Deposited  $  100  in  Home  City  Bank. 

July  24.  Sold  Adam  Davids  1  B.  W.  parlor  set,  $  ?  ;  1  ash  dining  table,  $  ?  ;  total, 
^  ?  ;  received  in  payment  Richard  Cook's  note  at  60  days,  favor  of  Adam  Davids,  dated 
July  24,  for  1 60 ;  discount  off  63  days  at  6  %,  ?  f' ;  check  for  the  balance,  $  ?  . 

July  24.  Sold  S.  A.  Reed,  on  his  note  at  90  days  with  interest,  1  B.  W.  chamber  set, 
$  ?  ;  IB.  W.  writing  desk,  $  ?  ;  1  B.  W.  bookcase,  ^  ?  ;  total,  %  ?  . 

July  25.    Received  Paul  Redmond's  check  for  |200,  to  apply  on  account. 

July  25.  Received  Edwin  Fuller's  check,  in  full  payment  of  his  note  of  July  12, 19 — ; 
face  of  note,  »|  ?  ;  interest  accrued,  ?  days  at  6  %,  ?  f  ;  total,  |  ?  . 

July  25.  Sold  James  Burchard,  on  his  note,  our  favor,  at  3  days,  1  mahogany 
center  table,  $  ?  ;  1  mahogany  parlor  set,  $  ?  ;  total,  $  ?  . 

July  25.   Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $  82.40. 

July  25.   Deposited  $375  in  Home  City  Bank. 

July  26.  Sold  James  Gray  1  B.  W.  roll  top  desk,  f  ?  ;  4  B.  W.  office  chairs,  at  $  ?  ; 
total,  I  ?  ;  received  in  payment  S.  C.  Gale's  note,  favor  of  James  Gray,  at  30  days  from 
July  5,  19 — ,  with  interest,  face  of  note,  $75;  interest  accrued  to  date,  ?  days  at  6  %,  ?  f  ; 
received  cash  for  the  balance,  $  ?  . 

July  26.   Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $50.45. 

July  26.    Deposited  $  50  in  Home  City  Bank. 

July  27.  Sold  Arthur  Bond,  on  credit,  1  R.  W.  parlor  set,  $  ?  ;  1  R.  W.  center  table, 
$  ?  ;  total,  $  ?  . 

July  27.   Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $74.30. 

July  27.  Sold  Young  &  Zier  1  ash  roll  top  desk,  $  ?  ;  6  ash  office  chairs,  at  $  ?  ; 
total,  $  ?  . 

July  28.    Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $  80.15. 

July  28.   Received  finished  furniture  from  factory,  per  statement,  $  1025. 

July  28.  Drew  from  Home  City  Bank,  per  check,  $  152.25,  and  paid  the  workmen's 
wages,  as  per  time  book  and  pay  roll. 

July  28.    Deposited  $  150,  cash,  in  Home  City  Bank. 

July  28.  Issued  our  note  at  2  months,  favor  of  Home  Manufacturing  Co.,  in  settle- 
ment of  account,  $  ?  . 


SEVENTH  SET 


163 


July  30.   Drew  on  Oscar  Patton  at  10  days'  sight,  in  favor  of  Isaac  Jacobs,  for 
amount  due  Jacobs  on  account,  $  ?  . 

July  30.    Received  Quirk  &  Co.'s  check  for  $200,  to  apply  on  account. 
July  30.    Paid  per  check  sundry  expenses,  per  petty  expense  book,  $43.75. 
July  30.   Received  Gideon  Hooker's  check  for  $  300,  to  apply  on  account. 
July  30.   Cash  sales  of  Mdse.  for  the  day,  as  per  tickets,  $  92.40. 

Deposited  $G00  in  Home  City  Bank. 

Received  Oscar  Patton's  note,  at  60  days  with  interest,  in  settlement  of  his 


July  30. 
July  31. 
account,  $  ?  . 
July  31. 
July  31. 
July  31. 
July  31. 


Gave  George  Heath  our  check  f or  $  ?  ,  in  settlement  of  account. 
Received  Arthur  Bond's  check  for  $150,  on  account. 

Received  James  Burchard's  check  for  $  ?  ,  in  full  of  his  note  due  this  day. 
Received  Theodore  Upham's  check,  in  full  payment  of  his  note  of  July  9, 
19 — ;  balance  of  principal,  $  ?  ;  interest  accrued  on  same,  ?  days  to  date,  ?  f  ;  face  of 
check  received,  $  ?  . 

July  31.    Deposited  $720  in  Home  City  Bank. 

July  31.    Paid  Th.  E.  Student,  per  check,  for  salary  as  manager,  $  ?  . 
July  31.   Paid  foreman  of  factory  per  check  for  the  month,  $  100. 
July  31.    The  partnership  existing  between  C.  C.  Curtiss  and  Th.  E.  Student  is  this 
day  dissolved  by  mutual  consent,  Th.  E.  Student  withdrawing  upon  condition  that  he 
receives  for  his  net  interest,  as  it  shall  appear,  C.  C.  Curtiss's  note  at  2  years  with  inter- 
est, for  one  half,  and  cash  for  the  balance.     A  complete  statement  is  to  be  made  showing 
the  condition  of  the  business  at  the  close  of  the  day,  and  each  partner  is  to  be  credited 
with  his  share  of  the  net  gain  or  debited  with  his  share  of  the  net  loss,  as  it  shall  appear. 
July  31.    Paid  Th.  E.  Student  for  his  net  interest  in  the  business,  as  per  agreement. 
C.  C.  Curtiss's  note  at  2  years  from  Aug.  1,  19 — ,  $  ?  ;  check  on  Home  City  Bank,  $  ?  . 


Inventory  Used  in  Closing  the  Books  of  Curtiss  &  Co.,  July  31,  19- 

-.    List  No.  I 

Mdse.,  Finished  Furniture 

8450 

Materials,  Unfinished  Furniture 

6275 

Tools  and  Implements;  3%  discount  from  cost 

2425 

Good  Will,  as  agreed 

2150 

Expense,  11  months'  Insurance 

252 

08 

Interest  Receivable 

Accrued  on  S.  A.  Reed's  note,  $  ? 

7ds 

.  at  n 

16 

"   S.  C.  Gale's      "     $  ? 

26  " 

u       « 

33 

Discount  on  Student's  acceptance,  $  ? 

42  " 

U        (( 

2 

10 

"    note,  favor  R.  Sterling  &  Co.,  $  ? 

39  '^ 

{(     11 

8 

13 

"          "       "       "      Home  Mfg.  Co.,  $  ? 

62  " 

u      « 

7 

75 

18 

47 

Interest  Payable 

On  Student's  note,  favor  Richard  Steele,  $  ? 

92  ds. 

11 

50 

"    our  note,  favor  Kinsley  &  Co. 

29   " 

66 

"      "       "      No.  2,  favor  Van  Dusen  &  Co. 

29  « 

4 

83 

((           ((            ((               ((       ^            it                                u 

29   « 

9 

67 

u      it       ii        «(   '4       «                   « 

29   « 

48 

33 

Discount  on  Ch.  Dean's  note,  favor  C.  C.  Curtiss 

37   " 

2 

78 

"        "   H.  Kellogg's  note,  our  favor 

58   " 

1 

82 

"        "    Richard  Cook's  note 

56   " 

56 

80 

15 

164 


PRACTICE  IN  MODERN  BOOKKEEPING 


Journal-Daybook 

Home  City,  Monday,  July  2,  19 — 


Bills  Receivable 

Arthur  Bond's  note  of  May  4, 19—, 
favor  C.  C.  Curtiss,  at  60  days, 
with  interest                            $  1500 
Charles  Dean's  note  of  June  5, 19—, 
favor  C.  C.  Curtiss,  at  90  days,  $  450 

1950 

Interest 

Accrued  on  Arthur  Bond's  note  to 
date,  ?days,  atG%                    S  ? 
Discount  to  maturity  on  note,  favor 
of  Edwin  Fuller,  ?  days,  at  6%  $  ? 

? 

C.  C.  Curtiss 

Foregoing  resources  invested    in 

? 

the  firm  of  Curtiss  &  Co. 

C.  C.  Curtiss                      i 

Following  liabilities  assumed  by 
the  firm  of  Curtiss  &  Co. : 

? 

Bills  Payable 

His  note,  favor  of  Edwin  Fuller, 
dated   May   10,    19—,    drawn    at 
3  months 

Interest 

Discount  on  Charles  Dean's  note 
to  maturity,  ?  days,  at  6% 

George  Heath 

Amount  owing  by  C.  C.  Curtiss 

? 

Isaac  Jacobs 
o 

Knute  Larson's  note,  in  favor  of 

1800 

9 

Bills  Receivable 

Th.  E.  Student,  of  May  14, 19—,  at 

60  days,  with  interest            $  1200 

Michael  Nelson's  note,  in  favor  of 

Th.  E.  Student,  of  June  3,  19—, 

at  3  months                              $600 

Oscar  Patton 

Owes  Th.  E.  Student 

1500 

Quirk  &  Co. 

<<        <<           (( 

450 

Interest 

On  Knute  Larson's  note  to  date, 
?  days,  at  6%                            $  ? 
Discount  on  Th.  E.  Student's  ac- 
ceptance, favor  Taylor  &  Co.,  to 
maturity,  ?  days,  at  G%           $  ? 

9 

Th.  E.  Student 

Foregoing   resources    invested   in 
the  firm  of  Curtiss  &  Co. 

? 

V 

V 

= 

SEVENTH  SET 

Journal-Daybook,  Continued 
Home  City,  Monday,  July  2,  19- 


165 


Th.  E.  Student 

Following  liabilities  assumed   by 
the  firm  of  Curtiss  »fc  Co. 

\ 

Bills  Payable 

His  note,  favor  of  Richard  Steele, 
dated  April  30,  15)—,  at  90  days, 
with  interest  at  (>  %                  $  750 
His  acc'p.,  favor  of  Taylor  &  Co., 
at  90  days,  from  June  10, 19—  $  300 
His  note, favor  of  Underwood  &  Co., 
at60days,withinterestatG%  $500 

? 

Interest 

Accrued  to  date  on  note,  favor  of 
Richard  Steele,  ?  days  at  6%    $  ? 
Accrued  on  note,  favor  of  Under- 
wood &  Co.,  ?  days  at  6%         S  ? 
Discount  on  Michael  Nelson's  note 

9 

O 

to  maturity,  ?  days  at  6%         $  ? 
Finished  Furniture 

10000 

Mdse. 

Materials 

Unfinished      " 

5000 

Tools  &  Implements 

Per  Inventory 

2500 

Good  AVill 

Per  agreement 

2000 

Expense 

Rent,  1  month  prepaid 

150 

Van  Diisen  &  Co. 

Bought  of  them  their  entire  busi- 
ness, as  per  bill  of  sale 

9 

Van  Diisen  &  Co. 

Our  4  notes,  with  interest,  secured 

9 

Mort.  Payable 

by  mortgage 

Note  No.  1  at  15  days               S  650 
"    2  "  30    "       '             1000 
"    3  "     3mos.                2000 

? 

o 

"    4  "    2  years             10000 
Policy  of  insurance  in  the  Home 

? 

Expense 

Kinsley  &  Co. 

Ins.  Co.  for  $  10000,  @  2%% 

? 

Kinsley  &  Co. 

Our  note  at  10  days,  with  interest 

9 

Bills  Payable 

at  0  % 

1  B.  W.  Bookcase                       $  ? 

? 

9 

Arthur  Bond 

Mdse. 

1       '•      Center  Table                  $  ? 
4      "      Office  Chairs,  @  $  ?    $  ? 
1  Uph.  Easy  Chair                     $!  ? 

? 

? 

9 

166 


PRACTICE   IN  MODERN  BOOKKEEPING 


Journal-Daybook,  Continued 
Home  City,  Tuesday,  July  S,  19- 


Charles  Dean 

1  B.  W.  Chamber  Set                  $  ? 

7 

Mdse. 

1      "      Dining  Table                  $  ? 
6     "           "      Chairs  @  $  ?    $  ? 

? 

Q 

1     "      Sideboard                      $  ? 
1  R.  W.  Parlor  Set                      $  ? 

? 

Edwin  Fuller 

Mdse. 

1      "      Writing  Desk                $  ? 
1  Oak  Bookcase                          $  ? 

? 

K 

2  Uph.  Easy  Chairs  @  ^  ?        $  ? 
1  Oak  Chamber  Set                    $  ? 

r) 

George  Heath 

Mdse.                     J: 

1    "    Dining  Table                    $  ? 

? 

8    "         "      Chairs  @  $  ?       S  ? 

1    •'    Sideboard                         $  ? 

Bills  Receivable 

His  note  at  10  days,  with  interest 

? 

George  Heath 

at  6% 

2V2  tons  coal  for  factory  at  $6.50 

Sold  him 

? 
? 

? 
? 

Expense 

Isaac  Jacobs 

Knute  Larson 

Mdse. 

1  Ash  Chamber  Set 

? 

Bills  Receivable 

His  note  at  30  days  for  bill 

? 

Knute  Larson 

1  Ash  Chamber  Set                     $  ? 

? 

? 

Michael  Nelson 

Mdse. 

1    "    Dining  Table                    $  ? 
6    "         "       Chairs  @  $  ?       8  ? 
1  Oak  Sideboard                         $  ? 

? 

Bills  Receivable 

Oscar  Patton's  Accp.,  his  favor 

? 

Michael  Nelson 

7 

at  11  days  from  July  6 
Lumber  per  invoice 

? 

? 

Materials 

R.  Sterling  &  Co. 

? 

R.  Sterling  &  Co. 

Our  note  at  60  days,  payable  at 

? 

Bills  Payable 

7 

our  office 

Received  from  factory,  per  fore- 

750 

? 

Mdse. 

Materials 

man's  statement 

750 

9 

? 

SEVENTH  SET 

Journal-Daybook,  Continued 
Home  City,  Moitdny,  July  9,  19- 


167 


Van  Wyck  &  Co. 

4  B.  W.  Chamber  Set<  @  S  ?    «!  ? 

? 

Mdse. 

«Oak           "          "     @$  ?    $  ? 
6    "       Dining  Tables  @$  ?    S  ? 

? 

o 

48    "            •*       Chairs  @  S  ?    $  ? 
10  Ash  Chamber  Sets      @  $  ?    S  ? 

Theo.  Upham 

Mdse. 

6    "    Dining  Tables     @  $  ?    $  ? 

48    "         "      Chairs     @  $  ?    $  ? 

2  Oak  Sidebdiirds          @  $  ?    $  ? 

Bills  Receivable 

His  note  at  la  days,  with  interest 

600 

Theo.  Upham 

600 

10 

Accepted    his  draft   at  60  days' 

125 

George  Heath 

Bills  Payable 

sight,  favor  of  Wm.  H.  Walker 

125 

• 

10 

Drew  on  him,  our  favor,  at  10  days' 

100 

Bills  Receivable 

Arthur  Bond 

sight,  Dft.  accepted 

100 

10 

Unfinished  furniture,  per  invoice 

1500 

Materials 

Home  Mnfg.  Co. 

1500 

10 

1  Oak  Roll  Top  Desk                 $  ? 

? 

Young  &  Zier 

Mdse. 

4    "    Office    Chairs    @  $  ?    S  ? 
2    "    Uph.  Easy  "       @  $  ?    $  ? 
1    "    Bookcase                          $  ? 

Bills  Receivable 

Their  note  at  10  days,  with  interest 

150 

Young  &  Zier 

150 

1 1 

1  R.  W.  Chamber  Set                  $  ? 

? 

Chas.  Dean 

Mdse. 

1    "       Parlor  Set                      $  ? 

? 

Bills  Receivable 

His  note  at  GO  days 

100 

Chas.  Dean 

100 

JO 

1  Mah.  Parlor  Set                       $  ? 

? 

Edwin  Fuller 

Mdse. 

? 

Bills  Receivable 

His  note  at  10  days,  with  interest 

75 

Edwin  Fuller 

75 

11 

Received   from  factory,  per  .fore- 

1025 

Mdse. 

Materials 

man's  statement 

1025 

V 

? 

168 


PRACTICE  IN  MODERN  BOOKKEEPING 


Dr. 


Cash  Journal,  Left-hand 
Cash  Receipts 


Date 

Cr,  Accounts 

Explanations 

P. 

Items 

Amts. 

19— 

July 

2 

C.  C.  Curtiss 

Invested  in  Curtiss  &  Co. 

7758 

45 

u 

2 

Th.  E.  Student 

.«               ,i                 a 

6805 

08 

2 

Mdse. 

Sales  per  tickets 

36 

20 

3 

« 

<(          i( 

42 

60 

5 

<( 

((          (( 

27 

90 

6 

Bills  Receivable 

Arthur  Bond's  note  of  May  4 

1500 

6 

Interest 

On  above,  63  days  at  6% 

15 

75 

6 

Bills  Receivable 

Michael  Nelson's  note 

600 

July 

6 
9 

Mdse. 

Cash  Dr. 

Sales  per  tickets 

Total  received 

^ 

To  apply  on  bill 

54 

25 

16840 

23 

16840 

23^ 

Van  Wyck  &  Co.     \ 

750 

9 

Mdse. 

Sales  per  tickets 

42 

75 

9 

Theo.  Upham 

His  sight  draft  on  Fred.  Curtiss 

266 

10 

Mdse. 

Sales  per  tickets 

54 

50 

11 

(( 

((          << 

39 

25 

12 

u 

(<          (( 

37 

45 

a 

13 

(( 

<(          (( 

53 

75 

« 

14 

Interest 

Discount  on  C.  C.  Curtiss's  note 
?  days,  at  6%,  on  $250 

1 

25 

a 

14 

Mdse. 

Cash  Dr. 

Sales  per  tickets 

Total  received 

45 

30 

1290 

25 

July 

16 

Balance,  July  7 
Knute  Larson's  note  of  May  14 

10570 

39 
64 

11860 

Bills  Receivable 

1200 

« 

16 

Interest 

On  above,  ?  days  at  6% 

12 

60 

11 

16 

Bills  Receivjtble 

Knute  Larson's  note  of  July  5 

45 

u 

16 

Mdse. 

Sales  per  tickets 

27 

75 

tl 

17 

« 

u 

65 

50 

11 

18 

Bills  Receivable 

Geo.  Heath's  note  of  July  5 

232 

iC 

18 

Interest 

On  above,  ?  days 

50 

« 

18 

(( 

Discount  on  our  accp.,  favor 
Wm.  H.  Walker,  ?  days 

1 

15 

it 

18 

Mdse. 

Sales  per  tickets 

107 

50 

11 

19 

i( 

" 

79 

60 

u 

19 

Bills  Receivable 

On  Theo.  Upham 's  note  of 
July  9,  19— 

249 

a 

19 

Interest 

Amount 

On  above  note,  ?  days 
forward 

1 

2021 

60 

SEVENTH  SET 


169 


Cash  Journal,  Right-hand  Page 
Cash  Payments 


Ck. 


Date 

Dr.  Accounts 

Explanations 

P. 

Items 

Amts. 

19— 
July 

(( 
(( 

(( 

July 

(( 

« 

July 

« 

2 

2 

6 

7 

10 
14 

14 
14 

14 

16 
18 
19 

Van  Dusen  &  Co. 
Kinsley  &  Co. 
Interest 

Materials 

Cash  Cr. 
Balance 

To  apply  on  bill  of  sale     Ck.  #  1 
On  bill  for  insurance                #  2 
Discount  on  Michael  Nelson's 
note,  62  days  at  6  % 
Pd.  Workmen  per  Pay  Roll     #  3 

Total  paid 
Juhj  7,  19— 

To  apply  on  bill                        #  4 
Th.  E.  Student's  note,  favor  of 
Underwood  &  Co.                      #5 
On  above,  ?  days  at  6% 
C.  C.  Curtiss's  note,  favor  of 
Edwin  Fuller  (ck.  $248.75)     #  6 
Pd.  Workmen  per  Pay  Roll     #  7 

Total  paid 
July  14, 19— 

Discount  on   Knute  Larson's 
note  of  July  5,  ?  days 
Accp.  favor  of  Wra.  H.  Walker, 
dated  July  10,  1<^-                   #  8 

forward 

6000 
137 

6 
126 

50 

20 
11 

6269 
10570 

84 
39 

16840 

23 

Home  Mnfg.  Co. 
Bills  Payable 

Interest 
Bills  Payable 

Materials 

Cash  Cr. 
Balance 

750 
500 

5 
250 

158 

25 
32 

1663 

10197 

57 
07 

11860 

64 

Interest 

Bills  Payable 

Home  Mnfg.  Co. 

Amount 

125 
400 

17 

525 

17 

170 


PRACTICE  IN  MODERN  BOOKKEEPING 


Trial  Balance  Book 
Trial  Balance  of  Balances.      List  1 


1                                                            . 
1                Open  Accounts                 \  L. 

July  14,  19— 

July  21,  If)— 

July  31,  19— 

C.  C.  Curtiss          Partner 

9000 

9000 

~ 

9000 

Th.  E.  Student            " 

9000 

9000 

9000 

Cash 

10197 

07 

11448 

95 

13440 

91 

Bills  Receivable 

3119 

1226 

2251 

75 

George  Heath 

200 

35 

Edwin  Fuller 

335 

135 

135 

Interest 

92 

12 

21 

12 

92 

Bills  Payable 

2562 

50 

2437 

50 

3187 

50 

Isaac  Jacobs 

.^ 

161 

25 

161 

25 

Materials 

^ 

6259 

46 

6206 

21 

5333 

46 

Oscar  Patton 

1500 

1500 

Quirk  &  Co. 

450 

450 

250 

Expense 

441 

25 

441 

25 

710 

Mdse. 

7743 

05 

6745 

55 

5826 

30 

Tools  and  Implements 

2500 

2500 

2500 

Good  Will 

2000 

2000 

2000 

Van  Wyck  &  Co. 

372 

* 

254 

254 

Home  Manufacturing  Co. 

750 

750 

Arthur  Bond 

48 

143 

143 

Mortgage  Payable 

13650 

13000 

13000 

Charles  Dean 

288 

288 

288 

Young  &  Zier 
Gideon  Hooker 
Koon  &  King 

70 

70 
377 
170 

135 
277 
190 

3.5323 

75 

35323 

75 

C.  M.  Loring 

307 

307 

Paul  Redmond 
"NTewton  Ogden 

134 

96 

99 
60 

34395 

96 

34395 

34200 

42 

34200 

42 

Cash  in  Safe,  July  31,  19— 

Listl 
$136.89 

2                            3                            4 
$155.45              $174.00               $192.56 

5 

$211.11 

6 

$229.67 

Cash  in  Home  City  Bank,  July  31, 

19— 

List  1 
^13304.02 

2                           3                          4 

$13305.52          $13307.02           $13308.52 

5 

$13310.02 

6 

$13311.52 

SEVENTH  SET 


111 


List  No.  2 


No.  3 


Trial  Balance  Book 

No.  4 


No.  5 


No.  6 


July  31,  1<>- 

July  31, 19— 

July  31,  19— 

July  31, 19— 

July  31, 15)— 

9000 

9000 

9000 

9000 

9000 

9000 

9000 

9000 

9000 

9000 

13460 

97 

1.3481 

02 

13501 

08 

13.52113 

13541 

19 

2254 

90 

2258 

05 

2261 

20 

2264 

3^ 

2267 

50 

139 

143 

147 

151 

l.)5 

12 

93 

12 

93 

12 

94 

12 

94 

12 

95 

3187 

50 

3187 

50 

3187 

50 

3187 

50 

3187 

50 

5333 

46 

5333 

46 

5333 

46 

5333 

46 

5333 

46 

250 

250 

250 

250 

250 

710 

710 

710 

710 

710 

5758 

45 

5690 

60 

5622 

75 

5554 

90 

5487 

05 

2500 

2500 

2500 

2500 

2500 

2000 

2000 

2000 

2000 

2000 

267 

65 

281 

30 

291 

95 

308 

60 

322 

25 

147 

60 

13000 

152 

20 

13000 

156 

80 

13000 

161 

40 

13000 

166 

13000 

291 

90 

295 

80 

299 

70 

303 

60 

307 

50 

138 

25 

141 

50 

144 

75 

148 

151 

25 

282 

80 

288 

60 

294 

40 

300 

20 

306 

192 

45 

194 

90 

197 

35 

199 

80 

202 

25 

310 

30 

313 

60 

316 

90 

320 

20 

323 

50 

102 

105 

108 

111 

114 

60 

70 

61 

40 

62 

10 

62 

80 

63 

50 

34200 

43 

34200 

43 

34200 

43 

34200 

43 

34200 

44 

34200|44 

34200 

44 

34200 

44 

34200 

45 

34200 

45 

II 

Net  Gain  July  31,  19 — 

Listl 

2           3           4 

5 

6 

13133.56 

$3201.40     $3269.25     $3337.09 

Gain  on  Merchandise  in  July,  19 — 

$3404.92 

$3472.76 

Listl 

2            3            4 

5 

6 

$2623.70 

$2691.55     $2759.40     $2827.25 

$2895.10 

$2962.95 

172 


PRACTICE   IN  MODERN  BOOKKEEPING 


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EIGHTH  SET  ^  173 

Eighth  Set.  —  Partnekship.     Produce  and  Shipping 

This  set  represents  a  Produce  and  Shipping  Business  conducted  by  a 
firm  consisting  of  two  partners  who  invest  unequally,  and  share  the 
gains  and  losses  in  proportion  to  their  net  investments.  Each  partner 
is  to  give  his  entire  time  to  the  business  and  shall  receive  six  per  cent 
interest  on  his  net  investment,  and  shall  be  charged  six  per  cent  on  his 
temporary  withdrawals. 

The  transactions  represented  in  this  set  are  arranged  for  the  purpose 
of  presenting  the  subject  of  Interest  and  Discount,  in  its  various  phases. 

The  cash  journal  is  made  a  special  feature,  all  cash  transactions  being 
recorded  in  the  cash  journal,  and  posted  to  the  ledger  from  the  cash 
journal.  This  book  is  closed  weekly,  and  balance  brought  forward.  The 
Cash  account  may  be  omitted  from  the  ledger,  and  when  it  is  so  omitted, 
the  balance  of  cash  on  hand  is  used  in  making  the  weekly  trial  balance. 

Special  opportunity  is  afforded  for  practice  in  letter  writing  in  connec- 
tion with  the  shipping  transactions  and  other  business. 

In  an  extensive  business,  where  many  buyers  and  salesmen  are  em- 
ployed, the  purchases  of  merchandise  would  be  entered  in  a  purchase 
journal  and  the  sales  of  merchandise  would  be  entered  in  a  sales  journal. 
The  total  purchases  for  the  day  would  be  posted  to  the  debit  of  Merchan- 
dise in  the  ledger,  and  the  proper  persons  credited ;  the  total  sales  for  the 
day  would  be  posted  to  the  credit  of  Merchandise  in  the  ledger,  and  the 
proper  persons  debited.  These  special  journals  may  be  used  in  this  set  at 
the  discretion  of  the  instructor. 


Books  Used.  —  Journal-daybook,  cash  journal,  check  book,  receipt  book,  note  book, 
bank  pass  book,  trial  balance  book,  letter  book,  and  stock  record  book. 

Business  Forms  Used.  —  Receipts,  bills  of  parcels,  checks,  shipping  invoices,  account 
sales,  notes,  and  drafts. 

Ledger  Titles  and  Number  of  Lines  Each  Will  Require.  —  Teacher,  7;  Student,  7; 
Abner  Crane,  6  ;  Brown  &  Day,  5 ;  Charles  Evans,  6 ;  Daniel  French,  8 ;  E.  Gale  &  Co.,  7 ; 
Frank  Harper,  6;  Gains  Innes,  6;  Hugo  Jones,  7;  Ira  King  &  Co.,  6;  James  Lowry, 
7;  Cash,  10;  Allan  Greer,  4;  Henry  Avery,  4;  Mdse.  (1st),  35;  Bills  Payable,  20; 
Expense,  8;  Alonzo  Boyd,  4;  Ship,  to  Chicago,  No.  1,  7 ;  S.  C.  Gale,  4;  Ship,  to  Detroit, 
No.  1,  7 ;  Koon  &  May,  4 ;  W.  H.  Yale,  9  ;  Bills  Receivable,  25 ;  Simeon  North,  4  ;  Elihu 
Root,  4;  Ship,  to  Boston,  No.  1,  7;  Ship,  to  Buffalo,  No.  1,  7;  Ship,  to  Milwaukee, 
No.  1,  6;  Cyrus  Northrop,  4;  W.  W.  Folwell,  4;  Ship,  to  New  York,  No.  1,  7;  Hiram 
Brown,  6 ;  Teacher,  Personal,  7 ;  J.  II.  Lewis,  4 ;  Ship,  to  Chicago,  No.  2,  6 ;  Loren 
Fletcher,  4;  David  Burt,  4;  Student,  Personal,  7;  Ship,  to  Detroit,  No.  2,  7;  Leslie 
Lane,  4;  James  Gray,  4;  Harlow  Gale,  4;  Ship,  to  Milwaukee,  No.  2,  7;  Silas  Brush, 
4 ;  P.  R.  Spencer.  4 ;  Literest,  18 ;  Ruf  ns  Choate,  4 ;  John  Douglass,  4  ;  Seth  Wright,  4 ; 
Otto  Miller,  4;  Henry  Robinson,  4;  Wm.  T.  Harris,  4;  Morris  Bros.,  4;  W.  C.  Smith, 
6  ;  C.  M.  Jordan,  6  ;  Paul  Jones  &  Co.,  6 ;  Ship,  to  New  York,  No.  2,  7 ;  Wm.  Windom,  6  ; 
Weed  Munro,  6;  Mdse.  (2d),  24;  Loss  &  Gain,  10;  D.  C.  Bell,  6;  J.  D.  Williams,  6; 
L.  D.  Harvey,  6 ;  Balance,  ?  . 


174 


PRACTICE  IN  MODERN  BOOKKEEPING 


GENERAL   INSTRUCTIONS   FOR   WORKING  EIGHTH   SET 

1.  Write  the  opening  entries  in  the  journal-daybook,  cash  journal. 

2.  Post  opening  entries  and  take  a  trial  balance. 

3.  Record  all  transactions  in  the  journal-daybook  or  in  the  cash  journal,  as  the  case 
requires,  making  out  all  the  bills,  notes,  receipts,  checks,  shipping  invoices,  and  writing 
all  letters  which  the  business  requires,  each  day  to  Aug.  4 ;  close  the  cash  journal ;  and 
post  to  the  ledger  from  the  journal-daybook  and  cash  journal. 

4.  Take  a  trial  balance  of  the  ledger  in  the  trial  balance  book. 

5.  Write  up  the  business  in  all  the  books  for  the  week  ending  Aug.  11,  making  out 
all  the  papers,  writing  all  the  letters,  properly  filing  all  papers  and  letters,  etc.  Deposit 
daily  all  the  cash  (checks,  bank  drafts,  and  currency)  received.  Close  Shipments  into 
Loss  &  Gain  on  receipt  of  account  sales. 

6.  Post  and  take  a  trial  balance  of  the  work,  in  trial  balance  book. 
Write  up  the  business  for  the  week  ending  Aug.  18. 
Post  and  take  a  trial  balance  in  the  trial  balance  book. 
Write  uj)  the  business  for  the  week  ending  Aug.  25. 
Post  and  take  a  trial  balance  in  the  trial  balance  book. 
Write  up  the  businesjs  for  the  week  ending  Sep.  1. 
Post  and  take  a  triial  balance  in  the  trial  balance  book. 

13.  Make  a  complete  iiiventory  of  all  property,  including  interest. 

14.  Close  the  ledger,  current  form. 

15.  Prepare  business  statement  and  financial  statement. 

16.  Make  out  a  balance  sheet  of  the  entire  business. 


7. 

8. 

9. 
10. 
11. 
12. 


Buying  Price  Lists 


Mdse.  Bought 

Per 

List  1 

2 

3 

4 

5 

6 

Barley, 

bus. 

40  J? 

41^ 

42  <^ 

43^ 

44^ 

45^ 

Beans, 

u 

11.10 

$1.12 

$1.14 

$1.16 

$1.18 

$1.20 

Butter, 

lb. 

18^ 

18|^ 

19^ 

191^ 

2(^f 

20|^ 

Cheese, 

ti 

12|^ 

13^ 

m^ 

14  <? 

Uif 

15^ 

Flour, 

bbl. 

$6.00  - 

$  6.05 

$6.10 

$6.15 

$6.20 

$6.25 

Oats, 

bus. 

35  ,<^ 

36^ 

37)? 

38  f 

39;* 

iOf 

Rye, 

(( 

40^ 

41^ 

42^ 

43  i? 

44^ 

45)* 

Wheat, 

(( 

75^ 

76^ 

77^ 

78^ 

79^ 

80)* 

Selling  and  Shipping  Price  Lists 


Mdse.  Sold  and  Shipped 

Per 

List  1 

2 

3 

4 

5 

6 

Barley, 

bus. 

45)* 

46)* 

47)* 

48)* 

49)* 

50)* 

Beans, 

<( 

$1.20 

$1.22 

$1.24 

$1.26 

$1.28 

$1.30 

Butter, 

lb. 

20)* 

20^)* 

21)* 

21^)* 

22)* 

22^)* 

Cheese, 

a 

U<^ 

14^^ 

15)* 

15^^ 

.  16)* 

16^^ 

Flour, 

bbl. 

$6.50 

$6.55 

$6.60 

$6.65 

$6.70 

$6.75 

Oats, 

bus. 

38)* 

39)* 

40)* 

41)* 

42)* 

43)* 

Rye, 

(( 

42J)* 

43])* 

44^)* 

45^)* 

46^)* 

47^)* 

Wheat, 

i( 

80)* 

81)* 

82)* 

83)* 

84)* 

85)* 

EIGHTH  SET  ^  176 

MEMORANDA  OF   TRANSACTIONS 

Home  City,  Wednesday,  Aug.  1,  19 — .  Teacher  and  Student  have  this  day  formed 
a  partnership  under  the  firm  name  of  Teacher  &  Student  for  the  purpose  of  carrying  on 
a  produce  and  shipping  business.  The  capital  of  the  firm  is  to  be  $  9000,  of  which  Teacher 
is  to  furnish  two  thirds,  and  Student  one  third,  and  the  gains  and  losses  are  to  be  shared 
in  proportion  to  their  investments. 

Aug.  1.  Teacher  makes  the  following  investments:  an  account  against  Abner  Crane 
for  $327.50;  an  account  against  Brown  &  Day  for  f  450;  an  account  against  Charles 
Evans  for  f  275;  an  account  against  Daniel  French  for  $  190 ;  cash,  $5688 ;  total,  $6930.50. 
Teacher's  liabilities,  which  the  firm  assumes,  are  as  follows :  Elihu  Gale  &  Co.,  on  account, 
$285.50;  Frank  Harper,  on  account,  $350;  Gains  Innes,  on  account,  $295;  total,  $930.50; 
net  interest,  $  6000. 

Aug.  1.  Student  makes  the  following  investments :  an  account  against  Hugo  Jones 
for  $475;  cash,  $3675;  total,  $4150.  Student'sJiabilities,  which  the  firm  assumes,  are  as 
follows:  Ira  King  &  Co.,  on  account,  $500;  James  Lo wry,  on  account,  $650;  total,  $1150; 
net  interest,  $  3000. 

Aug.  1.    Deposited  $  9300  in  Home  City  Bank. 

Aug.  1.  Bought  of  John  A.  Schlener  &  Co.  a  set  of  blank  books  for  the  office,  for 
cash,  $28.50. 

Aug.  2.   Bought  of  Elihu  Gale  &  Co.,  on  credit,  2500  lb.  Minnesota  butter,  at  ?^. 

Aug.  3.  Bought  of  Allan  Greer,  on  our  note  at  10  days,  with  interest,  250  bbls.  flour, 
at$?  . 

Note.  —  Interest,  in  this  set,  is  computed  at  6%,  and  days  of  grace  are  allowed  unless  otherwise 
specified. 

Aug.  3.  Bought  of  Henry  Avery,  on  our  note  at  30  days,  2000  bus.  oats,  at  ?  ^  ; 
1000  bus.  wheat,  at  ?  ^  ;  1500  bus.  barley,  at  ?  j*  ;  total,  $  ?  . 

Aug.  3.  Shipped  H.  M.  Burchard,  Chicago,  to  be  sold  on  our  account  and  risk,  75 
bbls.  flour,  invoiced  at  $  ?  ;  paid  drayage  on  same  per  check,  $  3.75 ;  total,  $  ?  . 

Aug.  3.   Paid  Elihu  Gale  &  Co.,  on  account  against  Teacher,  per  check,  $125. 

Aug.  3.   Sold  Alonzo  Boyd,  for  cash,  5  bbls.  flour,  at  $  ?  . 

Aug.  3.  Bought  of  S.  C.  Gale,  on  our  note  at  15  days,  with  interest,  4000  bus.  oats, 
at  ?  ^  ;  2000  bus.  wheat,  at  ?  ^  ;  total,  $  ?  . 

Aug.  4.  Shipped  P.  R.  Spencer,  Detroit,  to  be  sold  on  our  account  and  risk,  1000 
bus.  wheat,  invoiced  at  ?  ^  ;  paid  drayage  on  same  per  check,  $  16 ;  total,  $  ?  . 

Aug.  4.   Sold  Koon  &  May,  on  credit,  4  bbls.  flour,  at  $  ?  . 

Aug.  4.  Shipped  to  W.  H.  Yale,  Winona,  per  his  order,  750  bus.  wheat,  at  ?  ^  ;  paid 
drayage  on  same  per  check,  $22.50 ;  total,  $  V  . 

Aug.  4.   Paid  sundry  expenses,  per  petty  expense  book,  $15.63,  in  cash. 

Aug.  6.   Sold  Simeon  North,  on  his  note  at  10  days,  150  bus.  oats,  at  ?  ^  . 

Aug.  6.  Drew  at  sight  on  Koon  &  May,  our  favor,  for  bill  of  the  4th  inst.,  $  ?  , 
and  deposited  draft  in  Home  City  Bank,  to  our  credit. 

Aug.  6.   Sold  Elihu  Root,  on  his  note  at  10  days,  with  interest,  250  bus.  barley. 

Aug.  6.  Shipped  to  Samuel  R.  Gray,  Boston,  to  be  sold  on  our  account  and  risk, 
1000  bus.  oats,  invoiced  at  ?  ^  ;  paid  drayage  on  same  per  check,  $15;  total,  $  ?  . 

Aug.  6.  Accepted  Frank  Harper's  draft,  at  20  days'  sight,  on  Teacher,  in  favor  of 
D.  D.  Miner,  for  $1.50. 

Aug.  6.  Shipped  to  J.  C.  Bryant,  Buffalo,  to  be  sold  on  our  account  and  risk,  1500 
bus.  oats,  invoiced  at  ?  0  ;  paid  drayage  on  same  per  check,  $  15 ;  total,  $  ?  . 

Aug-7.  Accepted  Ira  King  &  Co.'s  draft,  at  30  days'  sight,  on  Student,  in  favor 
of  Thomas  Simpson,  $250. 


176  PRACTICE  IN  MODERN  BOOKKEEPING 

Correspondence 


TEACHER  &   STUDENT, 

Flour  &  Feed, 

Cor.  Main  &  Center  Sts.                    /^ 

^aXa^,  (QZat&),  CUicfivat  3,  f^ — 

Tflv.  //:  7n  JSwv<i.kouvci, 

(^kvMiA^a, 

Jtt. 

Jb&ouv  ^wv,  — 

1A)^&  kaA}-&  tAUy 

cioAf 

(ikl^d^e^cL  jo-w,  jii.&^ 

o/f.  la.  /?.  R,, 

75  6^{dQy.  StcyuAy,  a^  ja^&h 

iA^v-0'l€&  im^la^&cl,  W'kli.k  jii^t&oiQy&  o^M 

^(vu  &a^k  am^ci  ve/mA^^& 

^^&t 

jiiva@.£.£.cU'  at  y^^i/ 

&CLil'i&QZ  (Lcyyv- 

v■&nie/}^^e.  ^  dva.jt  p^  flf 

o-yyL& 

(g%. 

l/fawi/i.  le^^dy^t^iilti^, 

3^&a-&/i&v 

V  ^tyiUemt, 

Aug  7.  Drew  at  sight  on  Brown  &  Day,  for  the  amount  due  us  on  their  account, 
in  favor  of  and  to  apply  on  account  of  James  Lowry,  %  ?  . 

Aug.  7.  Shipped  to  R.  C.  Spencer,  Milwaukee,  to  be  sold  on  our  account  and  risk, 
1000  bus.  potatoes  bought  of  Daniel  French,  on  our  note  at  1.5  days,  at  ^'^f^  ^980;  paid 
drayage  on  same  per  check,  f  10 ;  total,  $  ?  . 

Aug.  7.  Accepted  Elihu  Gale  &  Co.'s  draft,  at  30  days'  sight,  favor  of  George  White, 
for  balance  of  their  account  against  Teacher,  %  ?  . 

Aug.  7.    Sold  Cyrus  Northrop,  for  cash,  10  bbls.  flour,  at  f  ?  . 

Aug.  7.   Received  Abner  Crane's  check  for  %  150  to  apply  on  his  account. 

Aug.  7.   Sold  W.  W.  Folwell,  for  cash,  250  bus.  barley,  at  ?  ;*  . 

Aug.  8.  Drew  on  Charles  Evans,  at  10  days'  sight,  in  favor  of  and  to  apply  on 
account  of  James  Lowry,  %  100. 

Aug.  8.  Shipped  Daniel  Slote,  New  York,  to  be  sold  on  our  account  and  risk,  2000 
bus.  oats,  invoiced  at  ?  J^'  ;  paid  drayage  on  same  per  check,  $20;  total,  %  ?  . 

Aug.  9.  Bought  of  Hiram  Brown,  8000  lb.  Minnesota  butter,  at  ?  f  ;  gave  in  part 
payment  our  note  at  10  days,  for  $340 ;  and  our  check  for  the  balance,  %  ?  . 

Aug.  9.  Accepted  George  H.  Dagget's  draft,  at  10  days'  sight,  on  Teacher,  favor  of 
J.  L.  Dobbin,  %  240,  not  assumed  by  the  firm  Aug.  1,  19 — . 

Aug.  9.   Sold  J.  H.  Lewis,  for  cash,  25  bbls.  flour,  at  $  ?  . 

Aug.  9.  Shipped  to  IL  M.  Burchard,  Chicago,  to  be  sold  on  our  account  and  risk, 
1000  lb.  Minnesota  butter,  invoiced  at  ?  ;*  ;  paid  drayage  on  same  per  check,  %  5 ; 
total,  %  ?  . 

Aug.  9.    Sold  Loren  Fletcher,  on  his  note  at  60  days,  1250  bus.  oats,  at  ?  ;? . 


EWHTII   SET  .  177 

Correspondence,  Continued 


H.  M.  BURCHARD, 

Commission  Merchant, 

144  State  St. 

(^ki@.a-(ja, 

JtL, 

CUic^iiqI  fO,  /f_ 

<^£.a^Atv  y  '^'t^od&nl, 

/lfcyYn.&  ^iX/i^,  {atat&). 

^emtC^'me/rv,  — 

cPn^to^e.cL  i^<yw  u^vlt  '^t&a.i& 

^trn^d 

OA^  OC^^^ycyumZ  ofaZ&Qy 

0-^  tk&  S^lcyiiv  v&e&iv-&d  am  t/i&   St/v  iA^o^t. 

^k&  ')^eL  ^u>^&&dU,, 

amvauntlncf  to-   $665 

<^0 ,  av&   keA^tiMf 

vt^rvi 

'tt&cL    6^1^    cOvoJI^t   (yyi 

/lf(yyyv&  ^itu,  OQy  jii.&v  uo-u^  t/jt^ytiueZuyn^. 

(Zw-aAXv'}^a  uo-'Wh 

j^uvtAeA,  o-hcleA^, 

J  veAyvaln, 

IfO-llAA' 

tv^ot'u, 

f-f.  m.  BwveAc^vd. 

jie.vi. 

Aug.  10.  Bought  of  David  Burt,  on  our  note  at  10  days,  with  interest,  3000  lb. 
cheese,  at  ?  f  . 

Aug.  10.  Paid  per  check  Student's  note,  in  favor  of  Frank  F.  Davis,  dated  July 
11,  19 — ,  $300;  interest  accrued  on  note,  30  days,  %  ?  ;  total,  %  ?  ;  not  assumed  by  the 
firm  Aug.  1,  19 — . 

Aug.  10.  Shipped  to  P.  R.  Si>encer,  Detroit,  to  be  sold  on  our  account  and  risk, 
1000  lb.  Minnesota  butter,  invoiced  at  ?  /?  ;   paid  drayage  per  check,  $5;  total,  $?  . 

Aug.  10.  Sold  Leslie  Lane,  on  his  note  at  10  days,  with  interest,  5  bbls.  flour,  at  $  ?  ; 
*200  lb.  Minnesota  butter,  at  ?  ^  ;  total,  %  ?  . 

Aug.  11.  Shipped  to  W.  H.  Yale,  Winona,  per  his  order,  1500  bus.  wheat,  at  ?  <?  ; 
paid  drayage  on  same,  $  15 ;  total,  %  ?  . 

Aug.  11.  Bought  of  James  Gray  5000  bus.  oats,  2X  "i  f  \  3000  bus.  barley,  at  V  f  ; 
4000  bus.  wheat,  2X'l  ^  \  total,  %  ?  ;  gave  in  part  payment  our  note  at  60  days,  %  2500 ; 
our  note  at  30  days,  $  1500 ;  certified  check  on  Home  City  Bank  for  the  balance,  %  ?  . 

Aug.  11.  Sold  Harlow  Gale  300  lb.  Minnesota  butter,  at  ?  ^  ;  500  lb.  cheese,  at  V  ^  ; 
10  bbls.  flour,  at  $  ?  ;  total,  %  ?  ;  received  in  part  payment  his  note  at  10  days  for  $75; 
his  note  at  15  days  for  $50 ;  and  his  check  for  the  balance,  $  ?  . 

Aug.  11.  Accepted  J.  T.  McCleary's  draft,  at  15  days'  sight,  on  Teacher,  favor  of 
Cushman  K.  Davis,  for  amount  not  assumed  Aug.  1,  19 — ,  $300. 

Aug.  11.    Bought  of  Silas  Brush,  on  our  note  at  60  days,  5000  bus.  oats,  at  ?  ^  . 

Aug.  11.  Received  from  IT.  IVI.  Burchard,  Chicago,  an  account  sales  of  the  flour 
shipped  him  Aug.  3,  together  with  sight  draft  on  Home  City  Bank  for  the  net  proceeds, 
$  565.90. 

Aug.  11.  Shipped  to  R.  C.  Spencer,  Milwaukee,  to  be  sold  on  his  account  and  risk, 
•JOOO  bus.  barley,  invoiced  at  ?  ^  ;  paid  drayage  on  same  per  check,  $  20 ;  total,  $  ?  . 


178 


PRACTICE   IN  MODERN  BOOKKEEPING 
Shipping  Invoice,  First  Form 


fJrLV-al^&  a^  77l£.ve.i%a.^u:LiQ.&  a^kiju.ja.e'ct  jn&v  cA.  Zl)-.  R.  R. 

and  M^yi^Ufn&cL  to-  /if.  /^f .   JSuv^ka'ul,  (LAU^a, 

ta  {^&  QX>tcL  a^-v  a^^&cHonJL  a/t^cL  vuiyfo  at 

3^um/v&v  y^  sftiuloi^t,  Hcymb  &ltn,  ^an^tan^w^. 

76  {^6-Iq..   <S^to-^L\y,  iy^v■^>i^EcL                @       f6. 60 

^S7 

60 

^Aavc^Q.  : 

S^did  ^^UM^a.(f& 

d 

76 

¥-^/ 

26 

€.   V  €.   (f. 

Aug.  13.  Received  from  P.  R.  Spencer,  Detroit,  an  account  sales  of  the  wheat 
shipped  him  on  the  4th  inst. ;  our  net  proceeds,  $  880.75,  have  been  placed  to  our  credit. 

Aug.  13.  Accepted  Gains  Innes's  draft,  at  10  days'  sight,  on  Teacher,  favor  of  Paul 
Jones  &  Co.,  for  %  150. 

Aug.  13.    Sold  Rufus  Choate,  for  cash,  500  bus.  wheat,  at  ?  ^  . 

Aug.  13.  Drew  at  10  days'  sight  on  Hugo  Jones,  our  favor,  for  %  100 ;  he  accepts 
and  returns  the  draft. 

Aug.  14.    Sold  John  Douglass,  for  cash,  250  bus.  barley,  at  ?  f  . 

Aug.  15.    Shipped  to  W.  H.  Yale,  Winona,  per  his  order,  2000  bus.  wheat,  at  ?  ^  . 

Aug.  16.  Received  W.  H.  Yale's  note  at  15  days  from  Aug.  5,  with  interest,  in  full 
payment  of  our  invoice  of  Aug.  4. 

Aug.  16.  Paid  per  check  our  note  of  the  3d  inst.,  favor  of  Allan  Greer,  %  ?  ;  interest, 
?  days,  %  ?  ;  total,  %  ?  . 

Aug.  16.  Paid  per  check  our  note  of  the  3d  inst.,  favor  of  Henry  Avery,  %  ?  ;  discount 
off,  ?  days  at  6  %,  ?  f  ;  face  of  check,  %  ?  . 

Aug.  16.  Prepaid  our  acceptance  of  the  6th  inst.,  favor  of  D.  D.  Miner,  per  check, 
%  ?  ;  discount  ofp,  ?  days,  at  6%,  ?  f  ;  face  of  check,  %  ?  . 

Aug.  16.  Bought  of  Seth  Wright  1500  bus.  beans,  at  $  ?  ;  1200  bus.  rye,  at  ?  j*  ; 
total,  %  ?  ;  gave  in  payment  our  note  at  60  days  for  f  1500;  our  note  at  30  days  for  the 
balance,  $  ?  . 

Aug.  16.  Sold  Otto  Miller,  on  his  note  at  10  days,  6  bbls.  flour,  at  8  ?  ;  150  lb.  cheese, 
at  ?  ^  ;  total,  !$  ?  . 

Aug.  16.  Sold  Henry  Robinson  500  lb.  Minnesota  butter,  at  ?  ^  ;  250  lb.  cheese,^ 
at  ?  ^  ;  total,  %  ?  ;  received  in  payment  his  note  at  10  days  for  ^75;  and  his  note  at  30 
days  for  the  balance,  %  ?  . 

Aug.  16.    Sold  Daniel  French,  on  his  note  at  one  month,  2750  bus.  oats,  at  ?  ^  . 

Aug.  17.    Sold  Frank  Harper,  on  credit,  1000  bus.  beans,  at  ^  ?  . 

Aug.  18.  Accepted  Elihu  Gale  &  Co.'s  draft,  at  one  month,  favor  of  S.  C.  Gale,  for 
bill  of  the  2d  inst.,  %  ?  . 


EIGHTH  SET 

Shipping  Invoice,  Second  Form 


179 


Jitvo-i^&  aj^  7T{eA^ka/yicLiQy&  iL-kijiiy^&cL  ^p.&v  cA.   y.  ^.  R.  R.  ^^^ 

to-  6'&  Q.atd  (yyu  as^€^(Hi.7tt  a/yvd  lio^k,  o-^  s^o^woyicfyw-ia^. 

/OOO  {yw^.  Wkite.  €.aX^,  vwuo-U&cl  @  88  f 
^kaAXf&^  : 

.  380 
/6 

3^6 

€.  V  €,  s: 

/favv&  €itj,  (Q-tat&),  1  ^&a^k&v  V  ^t^i.d&nL 

Aug.  18.  Received  from  J.  C.  Bryant,  Buffalo,  an  account  sales  of  the  oats  shipped 
him  on  the  6th  inst.  Our  net  proceeds  amount  to  ^  660,  for  which  he  incloses  his  note 
at  one  month  with  interest  from  Aug.  17,  19 — . 

Aug.  18.  Received  from  Samuel  R.  Gray,  Boston,  an  account  sales  of  the  oats  shipped 
him  on  the  6th  inst.  Our  net  proceeds  amount  to  ^  449.50,  for  which  we  draw  on  him 
at  sight  and  deposit  draft  in  Home  City  Bank. 

Aug.  18.  Paid  James  B.  Sykes,  per  check,  for  James  Lowry's  sight  draft  on  Th.  E. 
Student  for  %  100. 

Aug.  18.    Received  Frank  Harper's  note  at  one  month,  in  settlement  of  account,  $  ?  . 

Aug.  18.  Paid,  per  check,  Th.  E.  Student's  note,  favor  of  Mark  Morris,  for  $240, 
due  Sep.  20,  less  discount  for  ?  days  at  6  %,  ^  ?  ;  amount  paid,  %  ?  . 

Aug.  20.  Sold  William  T.  Harris,  on  his  note  at  60  days  with  interest,  50  bbls.  flour, 
at  ^  ?  . 

Aug.  20.   Sold  Abner  Crane,  on  credit,  25  bbls.  flour,  at  .f  ?  . 

Aug.  20.   Sold  Morris  Brothers,  on  their  note  at  one  month,  1000  bus.  barley,  at  ?  ^  . 

Aug.  20.  Received  from  W.  II.  Yale,  Winona,  his  note  at  30  days  from  Aug.  11, 19 — , 
with  interest,  in  full  payment  of  our  invoice  of  that  date,  ^  ?  . 

Aug.  21.   Sold  Hugo  Jones,  on  credit,  750  bus.  barley,  at  ?  ;2^  . 

Aug.  21.  Paid  our  note  of  Aug.  3,  19 — ,  favor  of  S.  C.  Gale,  per  check ;  face  of  note, 
$  ?  ;  interest  accrued,  ?  days,  $  ?  ;  face  of  check,  ^  ?  . 

Aug.  22.   Paid,  per  check,  our  note,  favor  of  Hiram  Brown,  dated  Aug.  9,  19 — ,  $  ?  . 

Aug.  22.    Paid,  per  check,  our  acceptance,  favor  of  J.  L.  Dobbin,  dated  Aug.  9, 1 9 — ,  $  ?  . 

Aug.  22.  Received  from  R.  C.  Spencer,  Milwaukee,  an  account  sales  of  the  potatoes 
shipped  him  Aug.  7.  The  net  proceeds  amount  to  i$975,  for  which  he  incloses  his  note 
with  interest,  afc  30  days  from  Aug.  22. 

Aug.  23.  Received  Leslie  Lane's  check  for  his  note  and  interest,  dated  Aug.  10, 19 — \ 
face  of  note,  ^  ?  ;  interest,  ?  days  at  6  %,  ?  ^  ;  total,  %1 . 

Aug.  23.  Received  from  W.  H.  Yale,  Winona,  Chicago  exchange  in  payment  of  his 
note  of  Aug.  5,  19 — ;  face  of  note,  $  ?  ;  interest  accrued,  ?  days,  $  ?  ;  total,  $  ?  . 


180 


PRACTICE   IN  MODERN  BOOKKEEPING 

Account  Sales,  Journal  Form 


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Aug.  23.  Received  Loren  Fletcher's  check  in  payment  of  his  note,  dated  Aug.  9, 19 — , 
at  60  days;  face  of  note,  %  ?  ;  discount  to  maturity,  ?  days,  %  ?  ;  face  of  check,  %  ?  . 

Aug.  23.  Paid,  per  check,  for  our  note,  in  favor  of  David  Burt,  dated  Aug.  10,  19 — ; 
face  of  note,  %  ?  ;  interest  accrued,  ?  days  at  6  %,  V  f  ;  total,  %  ?  . 

Aug.  23.  Sold  W.  C.  Smith  2500  bus.  oats,  at  ?  ^  ;  received  in  payment  his  note  at 
30  days  for  %  750 ;  and  his  check  for  the  balance,  '^  ?  . 

Aug.  24.  Sold  C.  M.  Jordan  500  lb.  cheese,  at  ?  f  ;  received  in  payment  his  note  at 
60  days  with  interest,  without  grace,  for  %  50  ;  and  his  check  for  the  balance,  %  ?  . 

Aug.  24.  Received  from  Harlow  Gale  his  check  for  note  at  10  days,  dated  Aug.  11, 
19—  $  ?  . 

Aug.  24.  Received  from  W.  H.  Yale,  Winona,  his  note  at  two  months  from  Aug.  18, 
19 — ,  with  interest,  for  $1000,  in  part  payment  of  invoice  of  Aug.  15;  and  Chicago 
exchange  for  the  balance,  %  ?  . 

Aug.  25.   Paid,  per  check,  for  our  note  of  Aug.  7,  19 — ,  favor  of  Daniel  French,  $  ?  . 

Aug.  25.  Shipped  Daniel  Slote,  New  York,  to  be  sold  on  our  account  and  risk, 
2500  bus.  oats,  invoiced  at  ?  ^  ;  paid  drayage  on  same,  per  check,  $  25 ;  total,  %  ?  . 

Aug.  25.    Sold  Hugo  Jones,  on  credit,  750  lb.  cheese,  at  ?  ^  . 

Aug.  25.   Received  cash  of  Hugo  Jones,  for  his  acceptance  of  Aug.  13,  19 — ,  %  100. 

Aug.  27.  Sold  Paul  Jones  &  Co.  500  bus.  rye,  at  ?  ^  ;  received  in  payment  our 
acceptance,  their  favor,  of  the  13th  inst.,  %  ?  ;  and  their  check  for  the  balance,  %  ?  . 

Aug.  27.  Sold  William  Windom  2350  bus.  oats,  at  ?  j?  ;  received  in  payment  our 
acceptance  of  Aug.  18,  19 — ,  at  one  month,  favor  of  S.  C.  Gale,  for  %  ?  ,  less  discount  on 
acceptance  ($?),$?;  his  check  for  the  balance,  %  ?  . 

Aug.  27.  Bought  of  D.  C.  Bell  1000  bus.  wheat,  at  ?  ^  ;  gave  in  payment  W^illiam  T. 
Harris's  note  of  Aug.  20,  19—,  ^  ?  ;  interest  accrued  to  date,  ?  days,  ?  f  ;  and  our  check 
for  the  balance,  .|  ?  . 

Aug.  27.  Sold  Weed  Munro  700  bus.  rye,  at  ?  ^  ;  received  in  payment  our  acceptance 
of  the  7th  inst.,  favor  of  George  White,  f or  $  ?  ,  less  discount,  ?  days  (?;?),$?;  and  his 
check  for  the  balance,  %  ?  . 


EIGHTH  SET 


Account  Sales,  Ledger  Form 


181 


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Aug.  27.  Sold  J.  D.  Williams  35  bbls.  flour,  at  ^  V  ;  received- in  payment  our  2d  note 
of  Aug.  16,  favor  of  Seth  Wright,  for  $  ?  ,  less  discount,  ?  days  (|  ?  ),  $  ?  ;  gave  him  our 
check  for  the  excess,  f  ?  . 

Aug.  28.  Received  from  Daniel  Slote,  New  York,  an  account  sales  of  the  oats  shipped 
him  Aug.  8,  19 — .  Our  net  proceeds  amount  to  $  859.50 ;  for  which  he  sends  his  note, 
dated  Aug.  28,  19 — ,  at  60  days  with  interest,  and  without  grace. 

Aug.  29.  Sold  L.  D.  Harvey  750  bus.  wheat,  at  ?  ^  ;  500  lb.  Minn,  butter,  at  ?  j?  ; 
total,  f  ?  ;  received  his  note  at  30  days  for  $  500 ;  and  his  check  for  the  balance,  $  V  . 

Aug.  29.  Paid,  per  check,  for  our  acceptance  of  Aug.  11, 19 — ,  favor  of  Cushman  K. 
Davis,  $  ?  . 

Aug.  29.    Received  Harlow  Gale's  check  for  his  2d  note  of  Aug.  11,  19 — ,  for  $  ?  . 

Aug.  29.    Received  Otto  Miller's  check  for  his  note  of  Aug.  16, 19 — ,  due  this  day,  $  V  . 

Aug.  29.    Received  Henry  Robinson's  check  for  his  note  of  Aug.  16,  19 — ,  $  75. 

Aug.  30.  Received  from  P.  R,  Spencer,  Detroit,  Chicago  exchange  in  full  of  account, 
%  ?  ;  and  interest  on  same  for  15  days,  $  ?  ;  total,  f  ?  . 

Aug.  30.  Prepaid,  per  check,  our  note  of  Aug.  11,  19 — ,  at  30  days,  favor  of  James 
Gray,  $  ?  ;  discount,  ?  days,  S$  ?  ;  face  of  check,  »$  ?  . 

Aug.  30.  Received  from  H.  ^M.  Burchard,  Chicago,  an  account  sales  of  the  butter 
shipped  him  Aug.  9,  19 — .  Our  net  proceeds  amount  to  ^  198.50,  for  which  he  incloses 
Chicago  exchange. 

Aug.  30.    Received  Daniel  French's  check  for  $  90,  to  apply  on  account. 

Aug.  30.  Paid  W.  A.  Barnes,  per  check,  for  rent  of  warehouse  and  office  for  the 
month  of  August,  $225. 

Aug.  30.    Paid  cash  for  sundry  expenses  per  petty  expense  book,  $39.76. 

Aug.  30.  Sold  Brown  &  Day,  on  credit,  500  lb.  Minn,  butter,  at  ?^;  100  lb.  cheese, 
at  ?  ^ ;  total,  $  ?  . 

Sep.  1.  Memoranda  —  The  partnership  of  Teacher  &  Student  has  been  dissolved  this 
daybyTnutual  consent.  Student  withdrawing  from  the  firm.  Complete  statements  are 
to  be  made  showing  the  present  conditions  of  the  business.     Each  partner  is  to  be  credited 


182 


PRACTICE  IN  MODERN  BOOKKEEPING 


for  his  net  gain  or  debited  for  his  net  loss,  as  the  case  may  be.  Student  agrees  to  accept 
for  his  interest  in  the  business  as  it  shall  appear,  $  2000  cash,  and  a  note  for  the  balance, 
payable  in  3  months  with  interest,  $  ?  . 

Sep.  1.   Teacher's  interest  on  net  capital  invested  Aug.  1,  $  V  ,  31  days,  at  6  %,  $  ?  . 

Sep.  1.    Student's  interest  on  net  capital  invested  Aug.  1,  $  ?  ,  31  days,  at  6  %,  $  ?  . 

Sep.  1.  Interest  on  $  ?  ,  withdrawn  by  Teacher  Aug.  9,  23  days,  at  0%,  ?^ ;  on  $  ?  , 
withdrawn  Aug.  11,  21  days,  at  6  %,  $  ?  ;  total,  $  ?  . 

Sep.  1.  Interest  on  $  ?  ,  withdrawn  by  Student,  Aug.  10,  22  days,  at  6  %,  $  ?  ;  on  $  ?  , 
withdrawn  Aug.  18,  14  days,  at  6  %,  ?  ^ ;  total,  $  ?  . 

Sep.  1.  Received  cash  from  Student  for  his  withdrawals,  $  ?  ,  and  interest  thereon, 
$  ?  ,  less  interest  on  net  capital,  $  ?  . 

Sep.  1.  Received  cash  from  Teacher  for  his  withdrawals,  $  ?  ,  and  interest  thereon, 
$  ?  ,  less  interest  on  net  capital,  $  ?  . 

Inventory  of  Liabilities 
Used  in  Closing  the  Books  of  Teacher  &  Student. 


Y^nterest  Payable 

Discount  on   Heni^  Robinson's  note,  of 

Aug. 

16, 

19—, 

?  days,  at  6  %,  on  $  ?  , 

9 

Discount  on    Daniel    French's   note,   of 

Aug. 

16, 

19— 

?  days,  at  6  %,  on  $  ?  , 

? 

Discount    on    Frank    Harper's    note,  of 

Aug. 

18, 

19— 

?  days,  at  6%,  on  $1000, 

9 

Discount    on    Morris    Bros.'    note,    of 

Aug. 

20, 

19— 

?  days,  at  6  %,  on  $  ?  , 

9 

Discount    on    W.   C.   Smith's    note,   of 

Aug. 

23, 

19— 

?  days,  at  6  %,  on  $  ?  , 

'? 

Discount    on    L.   D.    Harvey's  note,   of 

Aug. 

29, 

19—, 

?  days,  at  6%,  on  $  ?  , 

9 

9 

General  Results  of  August  Business 


Footings  of  the  Trial  Balance 

Listl 
$68836.43 

2 

$69759.80 

3                           4 

$70683.15          $71606.53 

Cash  on  Hand 

5 

$72529.91 

6 

$73453.30 

List  1 
$2343.90 

2 

$2148.17 

3                            4 

$1952.48             $1756.78 

Merchandise  on  Hand 

5 

$1561.05 

6 

$1365.34 

Listl 
$2038.75 

2 

$2075.00 

3                           4 

$2111.25             $2147.50 

Net  Gain 

5 

$2183.75 

6 

$2220.00 

List  1 
$1406.98 

2 

$1343.11 

3                           4 

$1279.29             $1215.45 

5 

$1251.59 

6 

$  1087.77 

EIGHTH  SET 


183 


Inventory  of  Resources 
Used  in  Closing  the  Books  of  Teacher  &  Student.     List  1 


Merchandise : 

?  bus.  Wheat                       (at  cost)                      @            ?  f 

? 

?  lb.  Butter                                  "                             @            ?  ?^ 

? 

?  "  Cheese                                 "                             @            ?^ 

V 

V  bus.  Beans                               «                            @           $  ? 
Shipments : 

V 

? 

Detroit,  No.  2           (at  cost) 

? 

Milwaukee,  No.  2           " 

? 

New  York,  No.  2 

Interest  Receivable : 

? 

? 

Discount  on  our  acceptance,  favor  of  Thomas  Simpson, 

• 

of  Aug.  7,  19—.    ?  days  at  6%  on                           $  ? 

? 

Discount  on  our  note,  favor  of  James  Gray,  of  Aug.  11, 19—, 

?  days  at  6  %  on                                                               $  ? 

? 

Discount  on  our  note,  favor  of  Silas  Brush,  of  Aug.  11, 19 — , 

?  days  at  6  %  on                                                               $  V 

? 

Discount  on  our  note,  favor  of  Seth  Wright,  of  Aug.  16, 19 — , 

?  days  at  6  %  on                                                               ^  ? 

? 

Interest  accrued  on  Elihu  Root's  note,  dated  Aug.  6,  19 — , 

?  days  at  6  %  on                                                                I  ? 

V 

Interest  accrued  on  Simeon  North's  note,  dated  Aug.  6, 19 — , 

?  days  at  6  %  on                                                               $  ? 

? 

Interest  accrued  on  J.  C.  Bryant's  note,  dated  Aug.  17, 19 — , 

?  days  at  6  %  on                                                               $  ? 

? 

Interest  accrued  on  W.  H.  Yale's  note,  dated  Ajig.  11, 19—, 

?  days  at  6  %  on                        *                                     $  ? 

? 

Interest  accrued  on  C.  M.  Jordan's  note,  dated  Aug.  24, 19 — , 

?  days  at  6%  on                                                             $  ?  ' 

y 

Interest  accrued  on  W.  H.  Yale's  note,  dated  Aug.  18, 19 — , 

?  days  at  6  %  on                                                             $  ? 

? 

Interest  accrued  on  R.  C.  Spencer's  note,  dated  Aug.  22, 19 — , 

?  days  at  6  %  on                                                               $  ? 

«> 

Interest  accrued  on  Daniel  Slote's  note,  dated  Aug.  28, 19 — , 

> 

?  days  at  6  %  on                                                             $  ? 

y 

? 

184 


PRACTICE   IN  MODERN  BOOKKEEPING 


Journal-Daybook 
Home  City,    Wednesday,  August  1,  19 — 


Abner  Crane 

Teacher's  account  against  him 

? 

Brown  &  Day 

" 

? 

Charles  Evans 

(<                                    H                            ((                       (< 

? 

Daniel  French 

^l                        a                    it               <( 

? 

Teacher 

Above  resources  invested 

? 

Teacher 

Following  liabilities  assumed 

? 

Elihu  Gale  &  Co. 

Their  account  against  Teacher 

V 

Frank  Harper 

His 

? 

Gains  Innes 
1 

i<              (<             i(             t( 
Student's  account  against  him 

? 

? 

Hugo  Jones                         x 

Th.  E.  Student     Jj 

Resource  invested 

? 

Th.  E.  Student                   ^ 

Following  liabilities  assumed 

V 

Ira  King  &  Co. 

Their  account  against  Student 

? 

James  Lowry 
o 

His 

?  lb.  Minn.  Butter,                       ?f 

? 

? 

Mdse. 

Elihu  Gale  &  Co. 

Bought  on  credit 

?  bbls.  Flour,                                $  ? 

? 

9 

Mdse. 

Allan  Greer 

Bought  of  him. 

? 

Allan  Greer 

Our  note  at  ?  days,  with  interest 

? 

Bills  Payable 

?  bus.  Oats,                  ?f           $? 

? 

? 

Mdse. 

?    "    Wheat,               ?  ^           $  ? 

?    "     Barley,               ?f            $? 

Henry  Avery 

Bought  of  him. 

? 

Henry  Avery 

Our  note  at  .'30  days 

? 

Bills  Payable 

ShippedtoH.M.Burchard, Chicago, 

? 

? 

Shipment  to  Chicago  ^1 

to  be  sold  on  our  %  and  risk 

, 

Mdse. 

?  bbls.  Flour,                                $  ? 
Sold  him 

? 

? 

O              ,.      .  . 

Alonzo  Boyd 

Mdse. 

?  bbls.  Flour                                $  ? 

? 

9 

? 

— H 

EIGHTH   SET 


185 


Journal-Daybook,   Continnad 
Home  City,  Friday,  August  3,  19 — 


Mdse. 

S.  C.  Gale 
S.  C.  Gale 

Bills  Payable 
4 


Shipment  to  Detroit,  :^  1 


Mdse. 


Koon  &  May 

Mdse. 
4 


W.  H.  Yale,  Winona 

Mdse. 
6 


Simeon  North 

Mdse. 
Bills  Receivable 

Simeon  Xorth 
6 


Elihu  Root 

Mdse. 
Bills  Receivable 

Elihu  Root 
6 


Shipment  to  Boston,  :^  1 

Mdse. 
6 


Frank  Harper 

Bills  Payable 


Shipment  to  Buffalo,  :^  1 

Mdse. 

7 


Ira  King  &  Co. 

Bills  Payable 


?  bus.  Oats, 

?^ 

«? 

?    "    Wheat, 

?;? 

$? 

Bought  of  him. 

Our  note  at  ?  days 

with  interest 

Shipped  to  P.  R,  Spencer,  Detroit, 

to  be  sold  on  our  oj^  and  risk, 

?  bus.  Wheat  ?  ^ 


Sold  them  on  credit 
?  bbls.  Flour 

Shipiied  per  his  order 
?  bus.  Wheat 

Sold  him 

?  bus.  Oats 

His  note  at  ?  days 


?j? 


If 


tf 


Sold  him 

?  bus.  Barley  ?  f 

His  note  at  ?  days,  with  interest 


Shipped  to  Samuel  R.  GFray,  Boston, 

to  be  sold  on  our  %  and  risk, 

?  bus.  Oats  ?  f 

Accepted  his  draft  at  20  ds.  sight 
on  Teacher,  favor  of  D.  D.  Miner 

Shipped  to  J.  C.  Bryant,  Buflfalo, 

to  be  sold  on  our  ^  and  risk, 

?  bus.  Oats  ?  f 

Accepted  their  draft  at  30  days' 
sight,  on  Th.  E.  Student,  favor 
Thos.  Simpson 


150 


250 


186 


PRACTICE  IN  MODERN  BOOKKEEPING 


Journal-Daybook,   Continued 
Home  City,  Tuesday,  August  7,  19 — 


James  Lowry 

Brown  &  Day 


Mdse. 

Daniel  French 
Daniel  French 

Bills  Payable 
Shipment  to  Milwaukee,  :j^  1 

Mdse. 


Elihu  Gale  &  Co. 

Bills  Payable 


Cyrus  Northrop 
Mdse. 

8- 


James  Lowry 

Charles  Evans 
8 


Shipment  to  New  York,  #  1 
Mdse. 


Mdse. 

Hiram  Brown 
Hiram  Brown 

Bills  Payable 
9 


Teacher 


BiUs  Payable 


9 


Shipment  to  Chicago,  ^  2 
Mdse. 


Our  sight  draft,  his  favor,  on 
Brown  &  Day,  in  full  of  amt.  due 
us  on  their  account 

?  bus.  Potatoes  ?  f 

Bought  of  him 
Our  note  at  15  days 

Shipped  the  Potatoes  to  R.  C. 
Spencer,  Milwaukee,  to  be  sold  on 
our  ^  and  risk 

Accepted  their  draft  at  30  days' 
sight,  favor  of  George  White,  for 
balance  of  their  ^ 


Sold  him 
?  bbls.  Flour 


$  ? 


Our  sight  draft,  his  favor,  on 
Charles  Evans,  to  apply  on  % 

Shipped  to  Daniel  Slote,  N.  Y.,  to 

be  sold  on  our  ^  and  risk, 

?  bus.  Oats  ?  f 

?  lb.  Minn.  Butter  ?  ^ 

Bought  of  him 

Our  note  at  10  days 

Check  for  balance  (C.B.) 

Accepted  G.  H.  Dagget's  draft 
at  10  days'  sight,  favor  of  J.  L. 
Dobbin,  on  Teacher.  Amt.  not 
assumed  Aug.  1,  li) — 

Shipped  to  H.M.Burchard, Chicago, 

to  be  sold  on  our  ^  and  risk, 

?  lb.  Minn.  Butter  ?  0 


450 


100 


? 
? 

240 


450 


100 


240 


Note.  —  Transactions  on  Aug.  7  and  Aug.  9  are  omitted  in  illustration. 


EIGHTH  ;SET 


187 


Journal-Daybook,  Continued 
Home  City,  Thursday,  August  9,  19 — 


Loren  Fletcher 

Sold  him 

V 

Mdse. 

?  bus.  Oats                                    ?  f 

9 

Bills  Receivable 

His  note  at  ?  days 

V 

Loren  Fletcher 

? 

10 

Mdse. 

?  lb.  Cheese                                ?  f 

? 

David  Burt 

Bought  of  him 

? 

David  Burt 

Our  note  at^lO  days,  with  interest 

? 

Bills  Payable 

? 

10 

Shipment  to  Detroit,  #  2 

Shipped  to  P.  R.  Spencer,  Detroit, 
to  be  sold  on  our  ^  and  risk, 

? 

Mdse. 

?  lb.  Minn.  Butter                       ?  f 

? 

10 

Leslie  Lane 

Sold  him 

? 

Mdse. 

?  bbls.  Flour                   $  ?        $  ? 
?  lb.  Minn.  Butter          ?  ^            ? 

? 

Bills  Receivable 

His  note  at  10  days,  with  interest 

? 

Leslie  Lane 

? 

11 

W.  H.  Yale,  Winona 

Shipped  per  his  order 

? 

Mdse. 

?  bus.  Wheat                               ?  f 

? 

11 

Mdse. 

?  bus.  Oats                      ?  ^       $  ? 
?    "     Barley                  ?  ^        $  ? 
?    "     Wheat                  ?  ^        S  ? 

.      ? 

James  Gray 

Bought  of  him 

? 

James  Gray 

Our  note  at  (JO  days                 $2500 

4000 

Bills  Payable 

"      "      "  30    "                       1500 
Check  for  balance,  $  ?          (C.B.) 

4000 

11 

Harlow  Gale 

Sold  him 

? 

Mdse. 

'?  lb.  Minn.  Butter           If        $  ? 
?  "   Cheese                     'if       $  ? 
?  bbls.  Flour                   $  ?       $  ? 

? 

Bills  Receivable 

His  note  at  10  days                     $75 

125 

Harlow  Gale 

«      «     «.  15    «                           50 
Check  for  balance,  $  ?          (C.B.) 

125 

'} 

? 

1 

188 


PRACTICE   IN  MODERN  BOOKKEEPING 


Cash  Journal,  Left-hand  Page 
Cash  Recpipts 


19— 
Aug. 


Aug. 


Aug. 


16 


Teacher 

Th.  E.  Student 

Alonzo  Boyd 

Cash  Dr. 


Koon  &  May 
Cyrus  Northrop 
Abner  Crane 
W.  W.  Fohvell 
J.  H.  Lewis 
Harlow  Gale 
Ship,  to  Chicago  ^  1 

Cash  Dr. 


Ruf  us  Choate 
John  Efouglass 
Interest 


Interest 


Cash  Dr. 


Invested  in  the  firm 

On  account  of  Mdse.  (J.) 

Total  received 


Sight  draft  deposited 
On  account  of  Mdse. 
On  account 
On  account  of  Mdse. 


(J.) 

(J.) 
(J.) 
(J.) 
Sales 


Net  proceeds  as  per  Acct 

from  H.  M.  Burchard 

Total  received 
Balance,  Aug.  4 


On  account  of  Mdse.  (J.) 

(J.) 

Discount  on  note,  favor  of 

Henry  Avery,  of  Aug.  3, 

20  days  at  6%  on  $  ? 

Discount  on  acceptance  of  Aug.  G, 

favor  of  D.  D.  Miner 

13  days  at  6%  on  $  ? 

Total  received 
Balance,  Aug.  11 


EIGHTH  SET 


18<) 


Cash  Journal,  Riyht-hand  Page 
Cash  Payments 


19— 

Aug. 

1 

n 

3 

n 

3 

a 

4 

a 

4 

4 

Aug. 

6 

(( 

6 

u 

7 

a 

8 

(( 

9 

it 

9 

a 

10 

a 

10 

ti 

11 

ii 

11 

11 

Aug. 


Expense 

Ship,  to  Chicago  ^j^  1 

Elihu  Gale  &  Co. 

Ship,  to  Detroit  ^  1 

Expense 

W.  H.  Yale,  Winona 

Cash  Cr. 

Balance 


Ship,  to  Boston  9^  1 
Buffalo  #  1 
Milwaukee  :^  1 
New  York  #  1 

Hiram  Brown 

Ship,  to  Chicago  ^2 

Th.  E.  Student 


Ship,  to  Detroit  #  2 
W.  H.  Yale,  Winona 
James  Gray 
Ship.to  Milwaukee  #  2 

Cash  Cr. 

Balance 


Bills  Payable 
Interest 
Bills  Payable 


Bills  Payable 


Cash  Cr. 
Balance 


Set  of  Blank  Books 
Drayage,  per  check 
Check  on  % 
Drayage,  per  check 
Per  Petty  Expense  Book 
Drayage,  per  check 

Total  paid 


Drayage,  per  check 


On  %  of  Mdse.  (J.) 
Drayage,  per  check 
His  note  of  July  11,  19— 
favor  of  Y.  F.  Davis 
Interest,  30  days 
Drayage,  per  check 


#? 
#? 
#? 

#? 


On  %  of  Mdse.  (J.) 
Drayage,  per  check 


$300 
1. 

# 
# 
# 
# 


Total  paid 


Note,  favor  Allan  Greer  #  '.' 

13  days  at  6%  on  above  $1500 
Note,    favor    Henry    Avery,    of 
Aug.  3,  19—.  #  ? 

Acceptance  favor  D.  D.  Miner  of 
Aug.  6,  19—.  #  ? 

Total  paid 


15 
15 
10 
20 

9 

5 
301 


o 
15 

20 


50 


190 


PRACTICE  IN  MODERN  BOOKKEEPING 


Trial  Balance  of  Balances.    List  i 


Open  Accounts 

Aug.  11,  19— 

Aug.  18,  19— 

Sep.  1,  19— 

Teacher                   Partner 

6000 

6000 

6000 

Student 

3000 

3000 

3000 

Abner  Crane 

177 

50 

177 

50 

340 

Brown  &  Day 

114 

Charles  Evans 

175 

175 

175 

1 

Daniel  French 

190 

190 

100 

Elihu  Gale  &  Co. 

450 

Frank  Harper 

200 

Gains  Innes 

295 

145 

145 

Hugo  Jones 

475 

375 

817 

50 

! 

Ira  King  &  Co. 
James  Lowry 
Shipment  to  Chicago,  No.  1 
BiUs  Payable 

- 

i 

250 

100 

74 

14995 

65 
50 

250 
14025 

50 

250 
6000 

Shipment  to  Detroit,  No.  1 

816 

«            Boston,    "    1 

395 

Cash 

7779 

52 

4706 

75 

2343 

90 

W.  H.  Yale,  Winona 

1837 

50 

2815 

Expense 
Merchandise 

44 

8107 

13 

44 

5684 

13 
50 

308 
640 

89 

Ship't  to  Buffalo,        No.  1 

585 

"        Milwaukee,    "    1 

990 

990 

New  York,     "    1 

780 

780 

"         Chicago,         "    2 
Detroit,           "    2 

205 
205 

205 
205 

205 

Bills  Receivable 

842 

4464 

50 

8734 

Ship't  to  Milwaukee,  No.  2 

920 

920 

920 

Teacher,                 Personal 

540 

540 

Student, 

P.  R.  Spencer 

Interest 

301 

50 

540 

880 

18 

75 

48 

61 

253ti5 

15 

25365 

15 

391 

Loss  and  Gain 

Ship't  to  New  York,  No.  2 

26890 

975 

326 

90 

23693 

31 

23693 

31 

15721 

90 

15721 

90 

List  2 


List  3 


EIGHTH  SET 

List  4 


191 


List  5 


List  6 


Sep.  1,  li>- 

Sep.  1, 19— 

Sep.  1,  19— 

Sep.  1,  19— 

Sep.  1, 19- 

6000 

6000 

6000 

1 

6000 

6000 

3000 

300( 

3000 

3000 

3000 

341 

25 

342 

5(1 

343 

7o 

345 

346 

25 

117 

120 

123 

126 

129 

175 

175 

175 

• 

175 

175 

100 

145 

100 

145 

100 

145 

100 

145 

100 

145 

828 

11 

250 
6050 

840 

250 
6100 

851 

25 

250 
6150 

862 

50 

250 
6200 

873 

75 

250 
6250 

2148 

17 

1952 

48 

1756 

78 

1561 

05 

1365 

34 

308 

89 

308 

89 

308 

89 

308 

89 

308 

89 

676 

25 

712 

50 

748 

75 

785 

821 

25 

210 

215 

220 

225 

230 

8814 

20, 

8894 

50 

8974 

75 

9055 

9135 

^l:^ 

940 

930 

980 

1000 

1020 

48 

59 

48 

53 

48 

48 

48 

4(i 

48 

42 

263 

15 

199 

4(1 

135 

65, 

71 

90 

8 

K) 

1000 

1025 

1050 

1075 

1100 

15708 

15 

15708 

15 

15694 

40 

15(594 

40 

15680 

65 

15()8(» 

65 

15666 

90 

15666 

90 

15653 

15 

1565M 

15 

192 


PRACTICE   IN  MODERN  BOOKKEEPING 


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